Demand Increases in an Increasing-Cost Industry That Is Initially in Long-Run

question 167

Multiple Choice

Demand increases in an increasing-cost industry that is initially in long-run competitive equilibrium. After full adjustment, price will be

• A)equal to its original level.
• B)below its original level.
• C)above its original level.
• D)There is not enough information to answer the question.

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Definitions:

Repeated Measures Design

An experimental design in which the same subjects are exposed to each condition or treatment, allowing direct comparison of different treatments on the same subjects.

Factorial Design

A type of experimental design that allows researchers to examine the effect of two or more variables simultaneously by changing them together, not just one at a time.

Participants

Individuals who take part in a research study, often providing data through their behavior, responses, or physiological reactions.

Factorial Design

An experimental design that allows researchers to study the effects of two or more independent variables simultaneously on a dependent variable.