Which of the Following Is the Correct Sequence of Events

question 16

Multiple Choice

Which of the following is the correct sequence of events following an increase in demand for a product in a perfectly competitive market?

• A)A decrease in the price and in the total profits of the representative firm which causes new firms to enter the industry.
• B)An increase in the price and in the total profits of the representative firm which causes firms to leave the industry.
• C)An increase in the price and in the total profits of the representative firm which causes new firms to enter the industry.
• D)An increase in the price but a decrease in the total profits of the representative firm which causes firms to leave the industry.

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Definitions:

Consumer Ethnocentrism

The belief held by consumers that purchasing foreign-made products is wrong because it harms the domestic economy.

Sociocultural Bias

Prejudice or discrimination based on cultural, social, or ethnic differences.

IMF

Stands for the International Monetary Fund, an international organization that aims to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.

Members

Individuals who belong to a group, organization, or community, often associated with certain benefits, responsibilities, or affiliations.