If the Demand Increases for the Product of a Decreasing-Cost

question 4

Multiple Choice

If the demand increases for the product of a decreasing-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) long-run price goes up, but short-run price may go up or down.

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Definitions:

Harry Harlow

An American psychologist best known for his research on social isolation, maternal-separation, and dependency needs of rhesus monkeys, which played a significant role in understanding human emotional and social development.

Surrogate Mother

A woman who agrees to bear a child for another person or couple, who will become the child's parent after birth.

Rhesus Monkeys

A species of monkey native to South, Central, and Southeast Asia, known for its importance in biological and medical research.

Harry Harlow

An American psychologist best known for his maternal-separation, dependency needs, and social isolation experiments on rhesus monkeys, which highlighted the importance of care-giving and companionship in social and cognitive development.