Consider a Perfectly Competitive Market with Long-Run External Economies

question 6

Multiple Choice

Consider a perfectly competitive market with long-run external economies.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 decreases.
• D)falls and the equilibrium quantity increases.
• E)falls and the equilibrium quantity remains the same.

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Definitions:

Tibialis Anterior

A muscle located in the front of the shin that helps in dorsiflexion and inversion of the foot.

Adducts Thigh

The action performed by muscles that move the thigh inward toward the midline of the body.

Flexes Knee

The action or movement that decreases the angle between the femur and the lower leg, typically performed by muscles like the hamstrings.

Gracilis

A long, slender muscle located in the inner thigh, involved in hip adduction and knee flexion.