If the Price of Steel Increases Drastically, the Quantity of Steel

question 6

Multiple Choice

If the price of steel increases drastically, the quantity of steel demanded by the building industry will fall significantly over the long run because

• A)buyers of steel are more sensitive to a price change if they have more time to adjust to the price change.
• B)buyers of steel are less sensitive to a price change if they have more time to adjust to the price change.
• C)sales revenue in the building industry will fall sharply.
• D)profits will fall by a greater amount in the long run than in the short run.

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Definitions:

Force Field Analysis

A management technique developed by Kurt Lewin, used to identify and analyze the forces for and against a change, helping in decision making and problem solving.

Status Quo

The current state or condition of affairs, often used in the context of maintaining existing circumstances or resisting change.

Driving Forces

Describes elements or factors that contribute significantly to the pushing or motivation toward the achievement of a certain goal or change within an individual or organization.

Restraining Forces

Factors that resist or oppose the direction of change, making it difficult to move from the current state to a desired future state in organizational and personal development.