Suppose That a Competitive Market Is Initially in Equilibrium

question 229

Multiple Choice

Suppose that a competitive market is initially in equilibrium. Then demand increases. If some resources used in production are not available in sufficient quantities for entering firms,

• A)the long-run market supply curve will be upward sloping.
• B)the long-run market supply curve will be perfectly elastic.
• C)in the long run firms will suffer economic losses, leading them to exit the industry.
• D)the number of firms will decrease, and the market will become a monopoly.

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Definitions:

Maslow's Needs

A hierarchy of human needs proposed by Abraham Maslow, ranging from basic physiological needs to safety, love/belonging, esteem, and self-actualization at the highest level.

Sullivan's Concepts

Refers to Harry Stack Sullivan's interpersonal theory which emphasizes the role of interpersonal relationships and social experiences in shaping personality.

Maslow's Needs

Refers to Abraham Maslow's hierarchy of needs, a motivational theory in psychology comprising a five-tier model of human needs, from physiological needs to self-actualization.

Holistic-Dynamic Theory

A psychological perspective that considers an individual as a whole, integrating motivational, emotional, and cognitive components.