Suppose an Increase in Product Demand Occurs in a Decreasing-Cost

question 115

Multiple Choice

Suppose an increase in product demand occurs in a decreasing-cost industry. As a result,

• A) the new long-run equilibrium price will be lower than the original long-run equilibrium price.
• B) equilibrium quantity will decline.
• C) firms will eventually leave the industry.
• D) the new long-run equilibrium price will be higher than the original price.

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Definitions:

Operational Definitions

Operational definitions specify the measurable conditions or specific procedures used to determine the presence, quantity, or quality of a variable, facilitating clear communication and replication in research.

Reckless Behavior

Actions taken without considering the safety of oneself or others, often with a disregard for the consequences.

Self-Control

Self-control refers to the ability to regulate one's emotions, thoughts, and behaviors in the face of temptations and impulses.

Negatively Correlated

A relationship between two variables in which one variable increases as the other decreases, and vice versa.