Consider a Competitive Market with a Large Number of Identical

question 242

Multiple Choice

Consider a competitive market with a large number of identical firms.What happens to the price if the demand increases in this market

• A)Price will increase in the short run then fall back to its original level in the long run.
• B)Price will decrease in the short run then rise to its original level in the long run.
• C)Price will increase in the short run then rise even more in the long run.
• D)Price will decrease in the short run then fall even more in the long run.

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