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

question 25

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

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Definitions:

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