Consider a Competitive Market with a Large Number of Identical

question 138

Multiple Choice

Consider a competitive market with a large number of identical firms. The firms in this market do not use any resources that are available only in limited quantities. In this market, an increase in demand will

• A)increase price in the short run but not in the long run.
• B)increase price in the long run but not in the short run.
• C)increase price both in the short and the long run.
• D)not affect price in either the short or the long run.

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Definitions:

Systematically Watches

The act of observing or monitoring something in a methodical and organized manner.

Affecting Subjects

Influencing participants in a study or experiment, potentially altering their behavior or responses.

Case Studies

Research methods involving the detailed examination of a single subject or group, providing in-depth data and insights.

Researcher Bias

The tendency for researchers to influence the outcome of a study due to their personal beliefs, expectations, or preferences, potentially skewing the results.