If a Firm Expects That the Price of Its Product

question 57

Multiple Choice

If a firm expects that the price of its product will be higher in the future than it is today

• A) the firm will go out of business.
• B) the firm has an incentive to increase supply now and decrease supply in the future.
• C) the firm has an incentive to decrease quantity supplied now and increase quantity supplied in the future.
• D) the firm has an incentive to decrease supply now and increase supply in the future.

Understand the structure and validity of a disjunctive syllogism.

Identify the necessary components of a disjunctive proposition.

Recognize valid and invalid conclusions in disjunctive syllogisms and hypothetical propositions.

Define and apply the concepts of antecedent and consequent in hypothetical propositions.