Suppose a Perfectly Competitive Market Is in Long-Run Equilibrium with a Price

question 212

Multiple Choice

Suppose a perfectly competitive market is in long-run equilibrium with a price of $12.Then there is a permanent increase in demand.As a result,in the short run the market price ________ and in the long run the number of firms ________ and the price is ________ the price was in the short run.

• A) rises; does not change; is equal to
• B) rises; increases; higher than
• C) rises; does not change; lower than
• D) falls; decreases; is equal to
• E) rises; increases; lower than

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Definitions:

Episodic Memory

The type of memory that involves the recollection of specific events, situations, and experiences.

Semantic Memory

A type of long-term memory involving the capacity to recall words, concepts, or numbers, which is essential for the use and understanding of language.

Retrieval Cues

Stimuli that help you retrieve a certain memory.

Chunk Information

A memory strategy involving breaking down information into smaller, manageable units or chunks to enhance recall.