Beginning from a Point of Long-Run Equilibrium, an Increase in the Market

question 404

Multiple Choice

Beginning from a point of long-run equilibrium, an increase in the market demand for wheat would result in

• A) an increase in the market price of wheat.
• B) existing wheat producers increasing output in the short run and earning positive economic profits.
• C) new firms entering the wheat industry in the long run.
• D) all of the above.

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Definitions:

Auxiliary Section

A supplementary part or segment of a machine or system, providing additional functionality or capacity.

Clockwise Rotation

A circular movement in the same direction as the hands move on a clock.

Gears And Shafts

Mechanical components that transmit rotational force; gears change the speed, torque, and direction of movement, while shafts support rotating parts and transfer motion.

Idler Gear

An Idler Gear is a gear positioned between two other gears to transmit motion from one to the other, often used to change the direction of rotation or to adjust the spacing between driving and driven gears.