Suppose a Perfectly Competitive Market Is in Long-Run Equilibrium with a Price

question 212

Multiple Choice

Suppose a perfectly competitive market is in long-run equilibrium with a price of $12.Then there is a permanent increase in demand.As a result,in the short run the market price ________ and in the long run the number of firms ________ and the price is ________ the price was in the short run.

• A) rises; does not change; is equal to
• B) rises; increases; higher than
• C) rises; does not change; lower than
• D) falls; decreases; is equal to
• E) rises; increases; lower than

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Definitions:

Intellectual Disability

A developmental disorder characterized by below-average intellectual function and a lack of skills necessary for day-to-day living, diagnosed before the age of 18.

Socioeconomic Backgrounds

The social and economic factors that characterize the family environment in which a person is raised, including education, income, and occupation.

Dyslexia

A learning disorder characterized by difficulty in reading due to problems identifying speech sounds and learning how they relate to letters and words.

Reading Comprehension

The ability to process text, understand its meaning, and to integrate it with what the reader already knows.