If Demand Increases in a Perfectly Competitive Market, Which of the Following

question 88

Multiple Choice

If demand increases in a perfectly competitive market, which of the following will likely occur?

• A)Firms will temporarily make a profit due to a higher price.
• B)Firms will enter the market in hopes of capturing some profits.
• C)The short run supply curve will shift to the right, eventually causing price to fall.
• D)All of these are correct.

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