If There Is an Increase in Market Demand in a Perfectly

question 255

Multiple Choice

If there is an increase in market demand in a perfectly competitive market, then in the short run prices will

• A)rise.
• B)remain unchanged at the minimum of average total cost.
• C)fall.
• D)remain unchanged at the minimum of marginal cost.

---

Definitions:

Meniscus Tear

A tear in one of the two crescent-shaped cartilage structures (menisci) in the knee, leading to pain, swelling, and mobility issues.

Mental Set

The tendency to approach situations in a fixed way based on previous experiences and perceptions.

Functional Fixedness

A cognitive bias that limits a person to use an object only in the way it is traditionally used.

Numerical Information

Data that is expressed in numbers, allowing for quantifiable comparisons and statistical analysis.