In autumn, the Connecticut apple market is perfectly competitive. If market demand increases—resulting, say, from a change in consumer taste—the demand curves faced by each individual firm will, in the long run
a. become vertical
b. become less elastic
c. remain unchanged
d. shift leftward
e. shift downward
C
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Why might very small plots of land be inefficient? Is it then true that the larger the better?
What will be an ideal response?
If a wealthy nation such as the United States trades with a poorer, less developed nation like Cambodia, then it is likely true that:
A. the United States is taking advantage of Cambodia and is the only beneficiary to the trade. B. Cambodia is pressured to enter trade and not benefiting at all. C. both the United States and Cambodia can benefit from trading. D. the United States is being charitable and not benefiting from the trade at all.
Imposing an entry fee on a public park will: a. increase the number of free riders
b. decrease the number of free riders. c. reduce the benefit received by society. d. increase the marginal cost borne by society.
Refer to the graph shown. Without government intervention, market forces would result in:
A. 500 labor hours demanded, 900 labor hours supplied, and a wage rate of $7.25 per hour. B. 500 labor hours demanded, 500 labor hours supplied, and a wage rate of $7.25 per hour. C. 800 labor hours demanded, 800 labor hours supplied, and a wage rate of $6.50 per hour. D. 1,200 labor hours demanded, 500 labor hours supplied, and a wage rate of $4.50 per hour.