If the Long-Run Market Supply Curve for a Good Is

question 42

Multiple Choice

If the long-run market supply curve for a good is perfectly elastic, an increase in the demand for that good will, in the long run, cause

• A) an increase in the number of firms in the market but no increase in the price of the good.
• B) an increase in the price of the good and an increase in the number of firms in the market.
• C) an increase in the price of the good but no increase in the number of firms in the market.
• D) no impact on either the price of the good or the number of firms in the market.