Suppose That Demand Increases

question 81

Multiple Choice

Suppose that demand increases. If the total cost curves for the firms do not change with the number of firms:

• A) the minimum average total cost, equilibrium price, output per firm, total market quantity, and number of firms will all increase.
• B) the minimum average total cost, output per firm, total market quantity, and number of firms will increase, but equilibrium price will decrease.
• C) the minimum average total cost, equilibrium price, and output per firm will not change, but total market quantity and the number of firms will increase.
• D) the output per firm, total market quantity, and number of firms will increase, but equilibrium price and minimum average total cost will decrease.

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Definitions:

Global Warming

The long-term rise in Earth's average surface temperatures, primarily due to human activities like burning fossil fuels.

Keystone Niche

A critical role that an organism plays in maintaining the structure and integrity of an ecosystem, often disproportionate to its abundance.

Specialist Niche

A narrowly defined role or position occupied by an organism or a business within an ecosystem or market, respectively, requiring specific adaptations or specialized skills.

Human Health

The overall condition of an individual's body or mind, especially in terms of the presence or absence of illnesses and impairments.