Suppose That the Cost Curves of the Firms Do Not

question 18

Multiple Choice

Suppose that the cost curves of the firms do not change when (identical) firms enter or exit the market. Under this scenario, a change in demand will _____ in a change in the market quantity because the number of firms will _____.

• A) not result; not change
• B) result; not change
• C) not result; change
• D) result; change

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Definitions:

Seasonally Adjusted

A statistical technique used to remove seasonal variations from a data series to more clearly analyze trends.

Unemployment Rate

The fraction of individuals in the labor force who are without jobs and are searching for employment.

Percentage Point

A unit of measurement used in expressing the difference between two percentages or proportion values.

Seasonally Adjusted

A statistical technique used to remove seasonal variations from data to reveal underlying trends.