Refer to Figure 23

question 21

Multiple Choice

Refer to Figure 23.4. In the long run, which of the following would not be expected?

• A) A decrease in market supply.
• B) An increase in total revenue for the remaining firms.
• C) An increase in output for the remaining firms.
• D) A decrease in MR for the remaining firms.

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Definitions:

Equilibrium Price

The market price where the quantity of goods supplied is equal to the quantity of goods demanded.

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price, where demand equals supply.

Price Ceiling

A government-imposed limit on how high a price can be charged for a product, service, or commodity.

Gallon

A unit of measurement for volume, primarily used in the United States, equal to 128 fluid ounces, or approximately 3.785 liters.