What Is the Effect of a Permanent Increase in Demand

question 75

Multiple Choice

What is the effect of a permanent increase in demand in a perfectly competitive market,with no external economies or diseconomies?

• A)Market price increases in the long run.
• B)Average cost decreases in the long run.
• C)Market price decreases in the long run.
• D)Average cost increases in the long run.
• E)Market price remains constant in the long run.

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Definitions:

Personal Space

The physical distance individuals prefer to maintain between themselves and others to feel comfortable and secure.

Non-intimate Interchanges

Exchanges or interactions that lack personal or private nature, often formal or professional.

High Power Distance

A cultural dimension indicating societies or organizations where there is a large gap between those in power and the general population, leading to a greater level of inequality and hierarchical structure.

Sexist Language

language that discriminates or shows bias against a particular sex, typically against women.