Consider a Perfectly Competitive Market with Long-Run External Diseconomies

question 55

Multiple Choice

Consider a perfectly competitive market with long-run external diseconomies.When demand increases permanently,the equilibrium price

• A)remains constant and the equilibrium quantity increases.
• B)remains constant and the equilibrium quantity decreases.
• C)rises and the equilibrium quantity increases.
• D)falls and the equilibrium quantity decreases.
• E)rises and the equilibrium quantity remains the same.

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Definitions:

Just Noticeable Difference

The minimum difference in stimulus intensity that a specific sense (like sight, hearing, taste, touch, or smell) can detect.

Optic Nerve

The nerve that transmits sensory information from the eye to the brain.

Occipital Lobe

is the region of the brain located at the back of the head, responsible for processing visual information.

Pupils

The opening in the center of the iris of the eye, which regulates the amount of light that enters the eye.