If, Ceteris Paribus, Demand in a Perfectly Competitive Industry Increases

question 117

True/False

If, ceteris paribus, demand in a perfectly competitive industry increases, the market price for the product will also increase.

---

Definitions:

Dominant Firm

A company that has a large portion of market share in its industry, giving it significant power to influence market conditions and prices.

Economic Incentives

Monetary or other rewards used to motivate individuals or entities to perform certain actions beneficial to economic objectives.

Differentiate

The method of differentiating a product or service to enhance its appeal to a specific target audience.

Market Competition

The rivalry among businesses to attract customers and achieve higher sales, profits, and market share.