The Following Question Are Based on the Following Table Showing

question 58

Multiple Choice

The following question are based on the following table showing the supply curves of the five individual firms constituting the rutabaga market in a small community. Assume that simultaneous changes in output by all firms do NOT affect input prices.

-In the short run,what adjustments take place when a perfectly competitive market in long-run equilibrium experiences an increase in demand?

• A) Price and profits fall, causing new firms to enter and existing firms to expand.
• B) Price and output remain fixed.
• C) Price rises but output remains unchanged.
• D) Price rises and firms expand output by using existing capacity more intensively.
• E) New firms enter and existing firms expand capacity, leading to an increase in supply and a decline in price.

---

Definitions:

Culture-Fair

Tests or assessments designed to be free of cultural biases, aiming to measure intelligence or abilities regardless of the test-taker's cultural or socio-economic background.

Socially Based Items

Objects or issues that derive their significance or value primarily from the social context or collective belief systems rather than intrinsic qualities.

Cultural or Ethnic Group

A community of individuals who share common cultural or racial backgrounds and traditions.

Developmental Scale

A tool or measurement system used to assess and compare the developmental progress of individuals, usually children, in various domains.