In the Short Run, an Increase in Demand for a Good

question 2

Multiple Choice

In the short run, an increase in demand for a good that is sold in a perfectly competitive market

• A) increases the number of firms in the market.
• B) has no effect on the price.
• C) increases the economic profits of existing firms in the market.
• D) causes more firms to shut down.

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Definitions:

Maximum Travel Distance

The furthest distance that can be traveled or permitted for transportation or movement within a system.

Traditional Department Store

A large retail establishment that offers a wide range of consumer goods in different areas such as clothing, furniture, appliances, and toys, typically spread over multiple floors.

Revenue Focus

A strategic emphasis on activities and processes that directly contribute to generating income for an organization.

Educational Infrastructure

Physical and organizational structures needed for the operation of educational institutions, including buildings, technology, and policies.