An Increase in the Demand for a Product and a Reduction

question 48

Multiple Choice

An increase in the demand for a product and a reduction in its costs of production would

• A)decrease the profits of producers.
• B)encourage firms to leave an industry.
• C)encourage firms to enter an industry.
• D)cause a shortage of the product.

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Definitions:

Retroactive Interference

The phenomenon where newly acquired information hinders the recall of previously learned information.

Anterograde Amnesia

A condition characterized by an inability to form new memories following the onset of the disorder, though long-term memories from before the event remain intact.

Encoding Failure

A situation where the brain fails to create a memory link to information, making it difficult to remember later.

Basal Ganglia

A group of structures in the brain involved in coordinating movement, as well as aspects of learning and emotion.