When Demand Increases in a Perfectly Competitive Market, _______ in the Short

question 118

Multiple Choice

When demand increases in a perfectly competitive market, _______ in the short run, and in the long run _______.

• A)prices increase; supply increases
• B)prices increase; prices stay permanently higher
• C)quantity supplied increases; prices increase
• D)quantity supplied decreases; prices decrease

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Definitions:

Excess Cost

This refers to the additional amount paid over the book value of an asset in a purchase consideration.

Goodwill

An intangible asset that arises when a company is purchased for more than the fair market value of its net assets, representing reputation, brand, or intellectual property.

Sold Separately

Items or services not included with the primary product and must be purchased independently.

Infringement Suit

A legal case brought against an individual or company for violating a patent, copyright, trademark, or other intellectual property rights.