Figure 10-9
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Figure 10-9 shows supply and demand conditions in a perfectly competitive industry and for a firm in that industry. Assume the industry initially has supply curve S1 and demand curve D1. If demand shifts to D2, then in the short run price will
A. rise to A.
B. rise to some level between A and B.
C. remain at B.
D. fall to C.
Answer: A
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