If there is an increase in market demand in a perfectly competitive market, then in the short run
a. there will be no change in the demand curves faced by individual firms in the market
b. the demand curves for firms will shift downward
c. the demand curves for firms will become more elastic
d. market supply will fall
e. profits will rise
E
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The creation of a lender of last resort in the United States
A) occurred in response to banking panics. B) was mandated in the U.S. Constitution. C) occurred in response to the S&L crisis of the 1980s. D) has been recommended by the Treasury in its report of late 1992.
Suppose a Russian economist told you that since the fall of communism, the Russian income distribution has shifted to perfect inequality, you would know then (no need to calculate), that the Russian Gini coefficient is
a. 1 b. 0 c. 10 d. -1 e. infinite
An insurance company that writes automobile policies tries to separate safe drivers from risky drivers by offering policies that feature different deductibles and different premiums. This practice is best described as an example of
a. screening. b. behavioral economics. c. monitoring. d. signaling.
If the CPI equaled 1.43 in 2008 and 1.56 in 2009, then between 2008 and 2009 there was:
A. an expansion B. a recession C. inflation. D. deflation