If Demand Increases in a Perfectly Competitive Market

question 110

Multiple Choice

If demand increases in a perfectly competitive market,

• A)then,in the short run,existing firms will find their profits diminishing,or their losses increasing
• B)existing firms will earn an economic profit
• C)the market price will decrease
• D)each firm will produce more along its short-run supply curve and total output will increase along the short-run market supply curve
• E)quantity demanded will increase and quantity supplied will decrease

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Definitions:

Personality Influences

The impact that individual character traits have on behavior and interactions.

Stressors

Events, situations, or stimuli that cause stress, triggering a physical or emotional response.

Role Overload

A situation where an individual faces more responsibilities or roles than they are able to manage, often leading to stress.

Role Conflict

occurs when there are incompatible demands, expectations, or pressures associated with a single role or between multiple roles performed by an individual.