A Market Is Initially in a Long-Run Equilibrium and There

question 235

Multiple Choice

A market is initially in a long-run equilibrium and there is a permanent increase in demand.After the new long-run equilibrium is reached,there

• A) are more firms in the market.
• B) are fewer firms in the market.
• C) are the same number of firms in the market.
• D) probably is a different number of firms in the market, but more information is needed to determine if the number of firms rises, falls, or perhaps does not change.
• E) is no change in the market.