In the Long Run, What Happens to the Demand Curve

question 88

Multiple Choice

In the long run, what happens to the demand curve facing a monopolistically competitive firm that is earning short-run profits?

• A)The demand curve will shift to the left and became more elastic.
• B)The demand curve will shift to the left and became less elastic.
• C)The demand curve will shift to the right and became more elastic.
• D)The demand curve will shift to the right and became less elastic.

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Definitions:

Restoration

Restoration involves the process of returning something to its original condition by repairing it, cleaning it, or rebuilding it.

Degraded Habitat

An environment that has been damaged or has deteriorated in quality, reducing its ability to support its native species.

Natural Regeneration

The process by which ecosystems recover and plant species regrow naturally after disturbances, without human intervention.

Uncut Forest

An area of forest that has not been subjected to logging, retaining its natural characteristics and biodiversity.