Suppose a Perfectly Competitive Market Is in Long-Run Equilibrium and Then

question 55

Multiple Choice

Suppose a perfectly competitive market is in long-run equilibrium and then there is a permanent increase in the demand for that product. The new long-run equilibrium will have

• A)fewer firms in the market.
• B)more firms in the market.
• C)the same number of firms in the market.
• D)a permanent decrease in supply.
• E)probably a different number of firms, but it is not possible to determine if there will be more or fewer firms.

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