Suppose an Increase in Population Increases the Demand for Automobile

question 143

Multiple Choice

Suppose an increase in population increases the demand for automobile repairs in New Haven County's market for auto repair,which is a perfectly competitive market.Which of the following is true in the short run?

• A)Auto repair centers may be able to earn an economic profit.
• B)Normal profits decrease.
• C)The market supply curve of auto repair services shifts to the left.
• D)The effect on equilibrium price and quantity is indeterminate.
• E)After firms adjust to the new equilibrium, the price of auto repair services will exceed the marginal cost.

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Definitions:

Assigns His Copyright

The act of transferring copyright ownership from the original holder to another party, either temporarily or permanently.

Accounting Works

Refers to the systematic process of recording, reporting, and analyzing financial transactions of a business.

Permanent Injunction

A court order requiring an individual or entity to permanently start or stop a specific action, often issued in cases where monetary damages are insufficient remedy.

Enhanced Injunction

A more stringent form of injunction that may include additional or stricter terms than a standard injunction, often used in complex legal situations.