If a Perfectly Competitive Market Is in Equilibrium and Then

question 21

Multiple Choice

If a perfectly competitive market is in equilibrium and then market demand increases,which of the following would happen?

• A)producer surplus would definitely increase and consumer surplus may increase or decrease
• B)producer surplus would definitely decrease and consumer surplus may increase or decrease
• C)consumer surplus would definitely decrease and producer surplus may increase or decrease
• D)consumer surplus would definitely increase and producer surplus may increase or decrease
• E)producer and consumer surplus would remain unchanged

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Definitions:

Serial Monogamy

The practice of engaging in a series of monogamous relationships, one after the other, without overlap.

Domestic Partnership

A legal category granting some rights ordinarily reserved to married couples to committed, cohabiting heterosexual, gay men, and lesbian women couples.

Open Relationship

A type of relationship where partners agree upon participating in sexual, emotional, or romantic activities with other people, outside their primary relationship.

Domestic Partnership

A personal relationship between two individuals who live together and share a domestic life but are not married.