An Increase in the Size of the Market Due to the Creation

question 217

Multiple Choice

An increase in the size of the market due to the creation of a free trade area

• A)reduces the equilibrium price and increases the number of firms.
• B)increases the equilibrium price and increases the number of firms.
• C)reduces the equilibrium price and decreases the number of firms.
• D)increases the equilibrium price and decreases the number of firms.
• E)has no effect on equilibrium price and decreases the number of firms.