When the Demand for a Good Increases,firms Respond by

question 5

Multiple Choice

When the demand for a good increases,firms respond by

• A) increasing their supply.
• B) decreasing their costs.
• C) leaving their production decisions alone.
• D) increasing their quantity supplied.
• E) decreasing their supply.

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Definitions:

Situation

A set of circumstances or the environment in which an event occurs.

Surprise

An unexpected or astonishing event, fact, or thing.

Stressor

Any stimulus or event capable of producing physical or emotional stress.

Acute Stress Disorder

A mental health condition characterized by the development of severe anxiety, dissociation, and other symptoms following a traumatic event.