Price in a Perfectly Competitive Market Will Change If ________

question 214

Multiple Choice

Price in a perfectly competitive market will change if ________.

• A) a firm decides to reduce its quantity supplied
• B) a few firms decide to collude and reduce their quantity supplied at the same time
• C) a major power outage forces all firms to reduce their quantity supplied
• D) a dominant firm decides to reduce its price

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Definitions:

Socialism

An economic and political system where the production, distribution, and exchange of goods and services are regulated or owned by the community as a whole or the state.

Communism

A socio-political and economic ideology aiming for a classless society in which the means of production are owned communally, and private property is nonexistent or severely curtailed.

Manufacturing Economy

A system where a country's economy is heavily reliant on the production and export of manufactured goods.

Crop Rotation

A method in agriculture where different types of crops are grown in the same area in sequenced seasons to improve soil health and reduce pests.