Graph 14-9 -Refer to Graph 14-9.Assume That the Market Starts in Equilibrium

question 152

Multiple Choice

Graph 14-9
-Refer to Graph 14-9.Assume that the market starts in equilibrium at point A in panel (b) .An increase in demand from DemanD₀ to DemanD₁ will result in:

• A)a new market equilibrium at point D
• B)rising prices and falling profits for existing firms in the market
• C)falling prices and falling profits for existing firms in the market
• D)an eventual increase in the number of firms in the market and a new long-run equilibrium at point C

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Special discounted prices offered to a defined group of people, typically for services or admissions.

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