Refer to the Graphs Shown, Which Depict a Perfectly Competitive

question 104

Multiple Choice

Refer to the graphs shown, which depict a perfectly competitive market and firm. If market demand decreases from D₀ to D₁:

• A) market price falls from P₀ to P₁ and the firm's output rises from q₀ to q₁.
• B) market price falls from P₀ to P₁ and the firm's output falls from q₁ to q₀.
• C) market price remains at P₀ because perfectly competitive firms can't earn positive economic profit.
• D) the firm's output remains at q₁ because perfectly competitive firms can't earn positive economic profit.

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Definitions:

Second Amendment

The Second Amendment to the U.S. Constitution protects the right of the people to keep and bear arms.

Right To Bear Arms

The constitutional right, as stated in the Second Amendment to the U.S. Constitution, allowing citizens to own and carry weapons.

Constitution

The fundamental law or set of principles by which a state or other organization is governed.

Establishment Clause

A clause in the First Amendment of the U.S. Constitution that prohibits the government from establishing an official religion, or unduly favoring one religion over others.