The Number of Firms Producing Computer Memory Chips Decreases

question 273

Multiple Choice

The number of firms producing computer memory chips decreases. As a result, the price of a memory chip ________ and the quantity of memory chips ________.

• A) rises; increases
• B) rises; decreases
• C) falls; increases
• D) falls; decreases

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Definitions:

Rational Self-Interest

The principle that individuals will make decisions that benefit themselves, assuming they have all necessary information and make rational choices.

Values

Fundamental beliefs or standards of an individual or society guiding behavior and decision-making.

Sold

The process whereby an item, service, or asset is exchanged for money or other consideration, resulting in a transfer of ownership.

Foreclosed

The legal process by which an owner's right to a property is terminated, usually due to failure to make mortgage payments.