Suppose That a Competitive Market Is Initially in Equilibrium

question 229

Multiple Choice

Suppose that a competitive market is initially in equilibrium. Then demand increases. If some resources used in production are not available in sufficient quantities for entering firms,

• A)the long-run market supply curve will be upward sloping.
• B)the long-run market supply curve will be perfectly elastic.
• C)in the long run firms will suffer economic losses, leading them to exit the industry.
• D)the number of firms will decrease, and the market will become a monopoly.

---

Definitions:

Abelam Mask

A traditional ceremonial mask created by the Abelam people of Papua New Guinea, often made from bamboo and painted with bright colors.

Uninitiated Males

Males who have not undergone certain rites of passage, ceremonies, or been introduced to specific knowledge or practices within a cultural or societal context.

Dilukai

A female figure with splayed legs, a common motif over the entrance to a Belau bai, serving as both guardian and fertility symbol.

Oceanic People

Indigenous peoples of the islands in the Pacific Ocean, including Polynesia, Micronesia, and Melanesia, known for their diverse cultures and maritime skills.