If the Demand for a Product Increases in an Increasing

question 102

Multiple Choice

If the demand for a product increases in an increasing cost industry, as the market adjusts in the long run,

• A) price will rise.
• B) the firm's per-unit costs will increase.
• C) the firm's per-unit costs will fall.
• D) the market price will return to its initial position.

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Definitions:

Assignment Of Book Debts

The transfer of the right to collect debts owed to a business, usually as security for a loan.

Conditional Sale Agreement

A contract for the sale of goods where the purchase price is paid in installments and the seller retains ownership of the goods until full payment is received.

Security

Measures or instruments (financial or physical) aimed at protecting assets, investments, or territories against loss, damage, or theft.

Provincial Personal Property

Assets and items of personal property as defined and regulated by provincial law in Canada.