An increase in the demand for a product will cause many firms to leave the industry.

Name: An increase in the demand for a product will cause many firms to leave the industry.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

An increase in the demand for a product will actually encourage firms to enter the industry in order to take advantage of the increased demand and potential profits. It is more likely that firms would leave the industry due to a decrease in demand or increased competition.

An Increase in the Demand for a Product Will Cause