Holding All Else Constant,an Increase in the Market Demand for a Product

question 49

Multiple Choice

Holding all else constant,an increase in the market demand for a product in a competitive market would cause

• A) the average total cost (ATC)curve of the firms to increase.
• B) a decrease in the price a firm could charge for the product.
• C) the marginal revenue (MR)curve of the firms to increase.
• D) the marginal cost (MC)curve of the firms to increase.
• E) a decrease in profits for a firm.

---

Definitions:

Intersection

The point or set of points where two or more geometric figures, lines, or paths cross each other.

Subjective Method

A method of assigning probabilities on the basis of judgment.

Probabilities

Measures of the likelihood that an event will occur, expressed as a number between 0 and 1.

Probability Values

Numerical values that represent the likelihood of the occurrence of a specific event or outcome.