If a Perfectly Competitive Market Is in Equilibrium and Then

question 21

Multiple Choice

If a perfectly competitive market is in equilibrium and then market demand increases,which of the following would happen?

• A)producer surplus would definitely increase and consumer surplus may increase or decrease
• B)producer surplus would definitely decrease and consumer surplus may increase or decrease
• C)consumer surplus would definitely decrease and producer surplus may increase or decrease
• D)consumer surplus would definitely increase and producer surplus may increase or decrease
• E)producer and consumer surplus would remain unchanged

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Definitions:

Racial

Pertaining to race or ethnicity, often used in the context of discussing diversity, ethnicity, and social dynamics.

Ethnic Groups

Collections of individuals who share common cultural, linguistic, or ancestral traits, distinguishing them from other groups.

Caregiver

Someone responsible for attending to the needs of a person who is elderly, sick, or disabled.

Female Adult Child

A grown woman who is considered in relation to her parents, often in the context of caregiving or family dynamics.