In a Perfectly Competitive Market That Is in Long-Run Equilibrium

question 432

Multiple Choice

In a perfectly competitive market that is in long-run equilibrium, a permanent leftward shift in the market demand curve

• A) raises the price in the short run.
• B) raises profits in the short run.
• C) leads to new firms entering the market in the long run.
• D) lowers the price at first but then raises it as firms leave the market.

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Definitions:

Respond Quickly

The ability to act or reply without delay in reaction to a situation or request.

Crisis

A critical, unstable, or pivotal time or situation in which a significant change is impending, often presenting a considerable challenge or danger.

Promising Results

Initial outcomes that suggest future success or effectiveness, often used in the context of research or experimental studies.

Changing Attitudes

The process of influencing or altering people's perceptions, beliefs, and behaviors towards a particular idea, person, or object.