Suppose That an Increase in Population Increases Demand in New

question 73

Multiple Choice

Suppose that an increase in population increases demand in New Haven County's perfectly competitive market for auto repair.Which of the following is true in the short run?

• A)Auto repair centers may be able to earn economic profit.
• B)Normal profits increase.
• C)The market supply curve of auto repair services shifts to the left.
• D)Either price or output is likely to increase, but it's impossible to say which.
• E)After firms have had time to adjust to the new equilibrium, the price of auto repair services will exceed the marginal cost.

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Definitions:

Voters

Individuals who have the right and responsibility to vote in elections to choose leaders and shape policies.

Social Policy

A governmental policy aimed at addressing social issues and ensuring the welfare and well-being of citizens through various means, such as healthcare, education, and income support.

Presidential

Pertaining to the president of a country or an organization, often relating to the duties, powers, or period of office of such a position.

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Relating to a formal legislative body, often referred to in the context of the United States Congress, which is responsible for making national laws.