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:

Alanon

A support group for families and friends of alcoholics, providing a community where individuals can share experiences and find mutual support.

Alateen

A peer support group specifically designed for teenagers affected by someone else's alcoholism.

Surrender

The process of accepting reality and letting go of the fight against factors outside one’s control, often used in the context of recovery from addiction.

Confession

The act of admitting to or acknowledging something that one has done, which is often considered wrong or has been kept secret.