If There Is an Increase in Market Demand in a Perfectly

question 210

Multiple Choice

If there is an increase in market demand in a perfectly competitive market, then in the short run

• A)there will be no change in the demand curves faced by individual firms in the market.
• B)the demand curves for firms will shift downward.
• C)the demand curves for firms will become more elastic.
• D)profits will rise.

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Definitions:

Market Demand

The total level of a product or service that all individuals in a market are disposed and capable of acquiring at multiple price ranges.

Fast Food

Quick-service restaurant offerings that are prepared and served very quickly, often emphasizing affordability and convenience over nutritional value.

Potato Chips

Snack food made from thin slices of potato that are either baked or fried until crispy.

FDA Announcement

An official statement released by the Food and Drug Administration related to approvals, safety information, or regulatory actions concerning drugs, food, or other products.