If the Demand Increases for the Product of an Increasing-Cost

question 11

Multiple Choice

If the demand increases for the product of an increasing-cost industry:

• A) short-run price goes up, but long-run price falls.
• B) long-run output goes up, but long-run price may go up or down.
• C) short-run output goes up, but long-run output may go up or down.
• D) long-run output goes up, but short-run price remains constant.
• E) short-run price goes up, and long-run price goes up.

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Definitions:

Drive

An innate or learned psychological factor that compels or motivates an individual's actions toward a particular goal.

Customer Value

How a customer views the value of a product or service compared to other available options.

Video Teleconferencing

A technology that allows people in different locations to hold face-to-face meetings without needing to be in the same place, through the Internet and video equipment.

Social Networks

Online platforms that allow users to create profiles, share content, and interact with friends and communities.