If Demand Increases in a Perfectly Competitive Market,then in the Short

question 61

Multiple Choice

If demand increases in a perfectly competitive market,then in the short run supply will:

• A) increase.
• B) decrease.
• C) not change.
• D) either increase or decrease.

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Definitions:

Anchoring Effect

A cognitive bias in decision-making where individuals rely too heavily on the first piece of information (the "anchor") offered when making decisions.

Behavioral Economics

A field of economics that studies the effects of psychological, social, cognitive, and emotional factors on economic decisions.

Time Inconsistency

The tendency of individuals to change their plans or preferences over time in ways that they themselves will later regard as being against their own interests.

Myopia

Short-sightedness, in a business context, refers to a focus on short-term results at the expense of long-term interests.