Examlex

Solved

Figure 14-14 -Refer to Figure 14-14. Assume That the Market Starts in the Market

question 315

Multiple Choice

Figure 14-14
Figure 14-14    -Refer to Figure 14-14. Assume that the market starts in equilibrium at point W in panel (b)  and that panel (a)  illustrates the cost curves facing individual firms. Suppose that demand increases from D0 to D1. Which of the following statements is correct? A)  Points W, Y, and Z represent both short-run and long-run equilibria. B)  Points W, Y, Z, and X represent short-run equilibrib. C)  Points W, Y, and Z represent long-run equilibria. D)  Points W and Z represent long-run equilibria.
-Refer to Figure 14-14. Assume that the market starts in equilibrium at point W in panel (b) and that panel (a) illustrates the cost curves facing individual firms. Suppose that demand increases from D0 to D1. Which of the following statements is correct?


Definitions:

Related Questions