Suppose a perfectly competitive market is in long-run equilibrium. If there is a permanent increase in demand,

A) at least in the short run, some firms will increase their output.
B) at least in the short run, the price will increase initially.
C) new firms will enter the market.
D) All of the above answers are correct.


D

Economics

You might also like to view...

What is the relationship between interest rates and bond prices? Explain

What will be an ideal response?

Economics

In an open shop no one is forced to ___________.

Fill in the blank(s) with the appropriate word(s).

Economics

Explain the forces that can cause an exchange rate to change.

What will be an ideal response?

Economics

What three conditions must be present for a natural monopoly to exist?

a. one supplier, no close substitutes, barriers for entry b. multiple suppliers, many close substitutes, no barriers for entry c. one supplier, many close substitutes, few barriers for entry d. few suppliers, no close substitutes, no barriers for entry

Economics