If the Demand Curve in an Increasing Cost Market Shifts

question 66

Multiple Choice

If the demand curve in an increasing cost market shifts up and to the right, then:

• A)both the short run and long run prices decrease.
• B)both the short run and long run prices increase.
• C)the short run price increases and the long run price stays the same.
• D)both the short run and long run prices stay the same.

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Definitions:

Society Gains

The benefits or improvements experienced by members of a society from economic, social, or environmental changes.

Subsidies

Financial support that governments provide to businesses, individuals, or other governmental entities, usually aimed at economic benefits or promoting certain activities or products.

Ethanol

A biofuel produced from various plant materials, commonly used as a renewable alternative to gasoline.

Market

A place or situation in which buyers and sellers engage in the exchange of goods and services.