If There Occurs a Permanent Decrease in the Demand for Convenience

question 130

Multiple Choice

If there occurs a permanent decrease in the demand for convenience store services,_____ in the long run

• A)each store will incur an economic loss
• B)the price charged by each store will increase
• C)there will be a decrease in the number of such stores
• D)there will be an increase in the number of such stores
• E)each store will earn an economic profit

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Definitions:

Marginal Productivity Theory

An economic theory that suggests that the amount of compensation or wage received by a resource (like labor) is determined by its marginal productivity or the additional output generated by using one more unit of the resource.

Income Distribution

Describes how a nation’s total GDP is distributed amongst its population, impacting levels of wealth and poverty.

Resource Pricing

The determination of prices for various factors of production, including labor, capital, and natural resources, based on market dynamics.

Money-Income Determination

The process of how individual and household incomes are determined, influenced by factors such as employment, wages, and economic policies.