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

question 29

Multiple Choice

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

• A) the price falling in the short run.
• B) the firms' economic profits falling in the short run.
• C) firms leaving the industry in the long run.
• D) none of the events listed above.

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Definitions:

Imposing Will

The act of enforcing one's desires or decisions upon others, often disregarding their consent or preferences.

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A period of major industrialization that took place during the late 1700s and early 1800s, transforming economies, societies, and manufacturing processes.

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The process of movement by people from one place to another with the intentions of settling, permanently or temporarily, at a new location.