When There Are Network Effects, a Reduction in the Number

question 352

Multiple Choice

When there are network effects, a reduction in the number of users will

• A) cause negative externalities.
• B) cause the price to rise.
• C) shift the demand curve to the left by a disproportionately large amount.
• D) shift the supply curve to the left by a proportionate amount.

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Definitions:

Inflammation

A biological response to harmful stimuli, such as pathogens or damaged cells, involving immune cells, blood vessels, and molecular mediators to facilitate healing.

Tolerance

The process by which the response to a substance decreases with repeated exposure, leading to the need for increased amounts to achieve the same effect.

Antigens

Substances that provoke an immune response in the body, often foreign proteins or polysaccharides that are recognized by antibodies or immune cells.

Unresponsiveness

The state of not reacting to stimuli or not exhibiting any response.