Which of the Following Will Occur in Response to an Unexpected

question 94

Multiple Choice

Which of the following will occur in response to an unexpected increase in demand in a constant-cost,competitive industry?

• A)Resources will move out of the industry.
• B)The output of the industry will remain constant.
• C)The output will increase with input prices remaining unchanged
• D)The existing firms will not be able to expand output sufficiently without incurring huge costs.