If a Market Is Not Subject to Large,frequent Shifts in Demand

question 89

Multiple Choice

If a market is not subject to large,frequent shifts in demand,

• A)firms will have a tendency to lower prices to increase market share
• B)the market will have few firms
• C)prices will approach equilibrium very slowly
• D)price leadership will rarely occur
• E)cheating on collusive agreements is more difficult

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Definitions:

Positive Feedback

A biological mechanism whereby a process enhances itself in such a way that an initial change leads to a further increase in its outcome.

Circulatory Shock

A life-threatening medical condition resulting from insufficient blood flow to the tissues of the body, causing organs to fail.

Severe Blood Loss

A critical condition that occurs when a significant amount of blood is lost from the circulatory system, leading to a drop in blood pressure and potential shock.

Stratified

Layers or levels that are arranged one on top of another, often referring to the layering found in sedimentary rocks or societal hierarchies.