Which of the Following Best Describes the Series of Events

question 31

Multiple Choice

Which of the following best describes the series of events shown in the figure? The original conditions prior to the change are shown by D ₀ and S ₀ (point A) , and S _LR is the market long-run supply curve.

• A) an increase in demand and an expansion in the number of firms in an increasing cost industry
• B) an increase in demand and an expansion in the number of firms in a decreasing cost industry
• C) an increase in demand and an expansion in the number of firms in a constant cost industry
• D) none of the above

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Definitions:

Transactional

Occurring simultaneously.

Transactional Messages

Communications focused on facilitating, completing, or confirming a commercial transaction.

Encoded

The process of converting information into a particular form or code, often for the purpose of secrecy, efficiency, or data transmission.

Decoded

Translated or interpreted from a coded or obscure form into a comprehensible or clear form.