If a Constant-Cost, Perfectly Competitive Industry Experiences an Increase in the Demand

question 296

Multiple Choice

If a constant-cost, perfectly competitive industry experiences an increase in the demand for its product, we would expect

• A) only the market price of the good to increase.
• B) both the market price and quantity supplied to increase.
• C) decreases in the market price, but increases in quantity supplied.
• D) only the quantity supplied of the product to increase.

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Definitions:

Global Demand

The total demand for goods and services in the global market, influenced by various factors including population and economic conditions.

Plant Fibres

Natural or botanical fibers derived from plants, used in making textiles, paper, and other products.

Construction Waste

Waste materials generated during the construction, renovation, or demolition of buildings, including materials like bricks, concrete, and wood.

Satellite Scans

Techniques using satellites to remotely analyze and record data from Earth, such as weather patterns, environmental changes, and geographic information.