In a Perfectly Competitive Market,in Response to a Permanent Increase

question 187

Multiple Choice

In a perfectly competitive market,in response to a permanent increase in demand:

• A) the short run equilibrium price will be higher than the eventual long run equilibrium price.
• B) the short run equilibrium price will be lower than the eventual long run equilibrium price.
• C) the short run equilibrium price will be the same as than the eventual long run equilibrium price.
• D) we cannot know whether the short run equilibrium price will be above, below or equal to the eventual long run equilibrium price.

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Definitions:

Machiavellian

Characterized by cunning, scheming, and unscrupulous behavior, especially in politics or in advancing one's career.

Con Artists

Individuals specializing in deceit or fraud to gain financial or personal advantages.

Persuasive

Capable of convincing others to believe or do something through reasoning or the use of temptation.

Situational Influences

The impact of the immediate environment or context on the behaviors, decisions, and attitudes of individuals or groups.