FIGURE 4-3 -Refer to Figure 4-3. the Diagram Shows a Rightward Shift

question 130

Multiple Choice

FIGURE 4-3
-Refer to Figure 4-3. The diagram shows a rightward shift in the demand curve for some good, and the
Short-run and long-run supply curves SS and SL, respectively) . In the new short-run equilibrium after the increase in demand, producersʹ revenue

• A) is unambiguously lower than in the long-run equilibrium at EL.
• B) could be higher or lower than at E0, depending on the short-run elasticity of supply.
• C) is unambiguously higher than at E0.
• D) is unambiguously lower than at E0.
• E) is unambiguously higher than at EL.

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Definitions:

Trusts

Legal arrangements where one party holds property for the benefit of another, also used in monopolistic business contexts to refer to large corporations that exert significant control over a market.

Will

A legal document in which a person specifies the method to be applied in the management and distribution of their estate after death.

Intestate

A legal term describing the status of an individual who dies without a valid will, leading to their estate being distributed according to statutory laws.

Heirs

Individuals legally entitled to receive a portion of a deceased person's estate according to the law or the will of the deceased.