Consider a Competitive Market with a Large Number of Identical

question 138

Multiple Choice

Consider a competitive market with a large number of identical firms. The firms in this market do not use any resources that are available only in limited quantities. In this market, an increase in demand will

• A)increase price in the short run but not in the long run.
• B)increase price in the long run but not in the short run.
• C)increase price both in the short and the long run.
• D)not affect price in either the short or the long run.

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Definitions:

Sinusoids

Specialized, capillary-like vessels that are larger and more permeable, found in certain organs like the liver, spleen, and bone marrow, facilitating blood flow and exchange of nutrients.

Liver

A large vital organ in vertebrates responsible for detoxification, protein synthesis, and biochemical production necessary for digestion and metabolism.

Goblet Cells

Specialized epithelial cells found in the respiratory and intestinal tracts, secreting mucus to lubricate and protect the mucous membranes.

Granular Cells

Cells containing granules that release substances involved in various bodily functions, such as inflammation or blood pressure regulation.