If a constant-cost, perfectly competitive industry experiences an increase in the demand for its product, we would expect
A. decreases in the market price, but increases in quantity supplied.
B. only the quantity supplied of the product to increase.
C. only the market price of the good to increase.
D. both the market price and quantity supplied to increase.
Answer: B
You might also like to view...
The demand curve for most goods is normally:
A) parallel to the vertical axis. B) parallel to the horizontal axis. C) upward sloping. D) downward sloping.
In which of the following situations would reliance on expert opinion as a basis for a managerial decision be most preferred?
A) When the product can be packaged with a variety of price and quality combinations. B) When the business in question serves as a supplier of inputs to other businesses, especially in multi-product situations where other strategies may be prohibitively expensive. C) When the level of economic activity can have a significant effect on the demand for the firm's output. D) When the product being marketed is relatively new.
An external benefit is a benefit from an activity that falls on a third party who is not a party to the activity
a. True b. False
A majority of the commercial banks in the United States are members of the Fed
a. True b. False Indicate whether the statement is true or false