Suppose a Competitive Industry Is in Long-Run Equilibrium

question 123

Multiple Choice

Suppose a competitive industry is in long-run equilibrium. When demand increases, market price

• A)decreases in the short and long run.
• B)rises in the short run and falls in the long run.
• C)decreases in the short run and rises in the long run.
• D)rises in the short and long run.
• E)rises in the short run and rises more in the long run.

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Definitions:

California Gold Rush

A period of migration to California following the discovery of gold in 1848, significantly impacting the state's development and demographics.

1849

Refers to a specific year in the 19th century, notable for the start of the California Gold Rush in the United States.

Emigrate

To leave one's country to live in another permanently.

China

A country in East Asia, the world's most populous nation, with a rich history, rapidly growing economy, and significant global influence.