In the Short Run,in Response to a Decrease in Demand,producers

question 12

Multiple Choice

In the short run,in response to a decrease in demand,producers will typically choose _______ prices,but rather to meet the decreased demand at _______ prices.

• A) not to cut;preset
• B) to cut;variable
• C) not to raise;preset
• D) to raise;variable
• E) to cut;preset

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Definitions:

Budget

A projection of revenues and expenses for a specified timeframe.

Total Utility

The total satisfaction or benefit received by consuming a particular amount of a good or service.

Income

Financial returns, mainly recurring, as compensation for work or investment income.

Technological Advance

The introduction of new technologies or the improvement of existing technologies, leading to better products, services, or ways of doing things.