​A Sudden Decrease in the Market Demand in a Competitive

question 63

Multiple Choice

​A sudden decrease in the market demand in a competitive industry leads to

• A)​Losses in the short-run and average profits in the long-run
• B)Above average profits in the short-run and average profits in the long-run
• C)New firms being attracted to the industry
• D)​Demand creating supply

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Definitions:

Systematic Desensitization

A therapy technique used to reduce fear or anxiety towards a particular object, situation, or activity through gradual exposure.

Hierarchy Of Triggers

A concept in psychology that represents a structured ranking of stimuli that elicit responses in an individual, organized by the level of impact or intensity.

Teaching Relaxation

Techniques provided in therapy to help individuals learn how to reduce stress and anxiety through physical relaxation and mental calmness.

Emotional Responses

Reactions that encompass a wide range of feelings, from happiness and excitement to sadness, anger, or fear, often in response to external stimuli.