When Demand Increases in a Perfectly Competitive Market,the Market Price

question 8

Multiple Choice

When demand increases in a perfectly competitive market,the market price:

• A) increases in the short run and falls in the long run.
• B) decreases in the short run and increases in the long run.
• C) increases in the short run and stays permanently higher in the long run.
• D) decreases in the short run and stays permanently lower in the long run.

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Definitions:

Experimental Designs

Structured research strategies used to test hypotheses by manipulating variables to assess their effect on an outcome.

Stratified Random Sampling

A sampling method that involves dividing the population into distinct subgroups and then randomly selecting samples from each subgroup to ensure representation.

Annual Income

The total amount of money earned or received by an individual or entity within one calendar year.

Subsample

A subset of a larger sample or population, extracted for specific analysis or investigation purposes.