If There Is a Permanent Decrease in Demand in a Perfectly

question 7

Multiple Choice

If there is a permanent decrease in demand in a perfectly competitive market, then there is an initial _______ in price and existing firms _______.

• A) rise; incur an economic loss
• B) rise; make an economic profit
• C) fall; incur an economic loss
• D) fall; make an economic profit

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Definitions:

Peritubular Capillaries

Tiny blood vessels that surround the tubules in the kidney, involved in the exchange of substances between blood and the tubular fluid.

Glomerulus

A network of capillaries located in the nephrons of the kidney that plays a crucial role in filtering blood to form urine.

Grasshoppers

Insects of the suborder Caelifera within the order Orthoptera, known for their powerful hind legs for jumping.