Use the Following to Answer Question

question 82

Multiple Choice

Use the following to answer question:
Figure 8.17
-(Figure 8.17) Initially, the constant-cost industry was in long-run equilibrium at point A when the demand for the good increased to D₂. How much output will be produced in the long run as a result of the demand increase?

• A) 3,000
• B) 5,000
• C) 6,000
• D) 7,000

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Definitions:

Midpoint Method

A technique used in economics to calculate the percentage change in quantity demanded or supplied between two points on a curve, providing an average elasticity for that range.

Cross-Price Elasticity of Demand

A measurement of how the quantity demanded of one good responds to a change in the price of another good, indicating whether they are substitutes or complements.

Cross-Price Elasticity

A measure in economics that shows how the quantity demanded of one good responds to a change in the price of another good.

Cross-Price Elasticity of Demand

An indicator of how the demand for one product shifts following a change in the cost of a separate product.