Suppose That an Increase in Population Increases Demand in New

question 73

Multiple Choice

Suppose that an increase in population increases demand in New Haven County's perfectly competitive market for auto repair.Which of the following is true in the short run?

• A)Auto repair centers may be able to earn economic profit.
• B)Normal profits increase.
• C)The market supply curve of auto repair services shifts to the left.
• D)Either price or output is likely to increase, but it's impossible to say which.
• E)After firms have had time to adjust to the new equilibrium, the price of auto repair services will exceed the marginal cost.

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Definitions:

Divide-And-Conquer

An algorithm design paradigm based on recursively breaking down a problem into two or more sub-problems of the same or related type until these become simple enough to be solved directly.

Design Approach

A design approach refers to the strategy or methodology applied during the problem-solving and planning phase of developing software, systems, or products, focusing on meeting specific goals and requirements.

Smaller Problems

A concept in programming and algorithm design that involves breaking a problem down into more manageable sub-problems.

Local Variables

Variables that are declared inside a function or block and are accessible only within that function or block.