In a Perfectly Competitive Market, an Increase in Market Demand

question 109

Multiple Choice

In a perfectly competitive market, an increase in market demand in a long-run constant-cost industry causes:

• A) an increase in price, quantity, and profit in the short run.
• B) an increase in price, quantity, and profit in the long run.
• C) a decrease in price, a decrease in quantity, and a decrease in profit in the short run.
• D) a decrease in price, a decrease in quantity, and a decrease in profit in the long run.

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Definitions:

Pudendal Cleft

The anatomical term for the cleft between the labia majora, part of the external female genitalia.

Macroeconomic Environments

The broad economic conditions and contexts that affect the economy as a whole, including inflation rates, growth rates, employment levels, and government policies.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values from its mean.

HMO

Health Maintenance Organization, a medical insurance group that provides health services for a fixed annual fee.