Assume There Is an Increase in Demand in a Perfectly

question 72

Multiple Choice

Assume there is an increase in demand in a perfectly competitive market that was initially in long-run equilibrium.Which of the following statements is false?

• A)Consumers have shown that they now consider the good to be more valuable.
• B)In the short run, profits will be lower than normal.
• C)Resources from other industries will be attracted into the market.
• D)Over time, the market supply curve will shift right.

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Definitions:

Physical Punishment

The use of physical force with the intention of causing a child to experience pain, but not injury, for purposes of correction or control.

Operant Conditioning

A method of learning that uses rewards and punishments to influence behavior.

Observational Learning

A learning process through watching others, retaining the information, and later replicating the behaviors that were observed.

Models

Representations, often simplified or idealized, used to explain, predict, or simulate complex systems or behaviors.