In both price-taker and competitive price-searcher markets, when an increase in market demand disrupts a long-run equilibrium, it will lead to
A) higher short-run prices and long-run profits.
B) higher short-run prices, short-run profits, and the entry of additional firms into the market.
C) higher short-run prices and the exit of firms from the market due to economies of scale.
D) no change in prices in the short run, but new firms will enter in the long run.
Correct Answer:
Verified
Q145: Which of the following provides the strongest
Q146: Which of the following statements about price
Q147: In long-run equilibrium, output is expanded to
Q148: Suppose housing construction is a price-searcher market
Q149: The traditional view of competitive price-searcher markets
Q151: Airlines generally charge travelers willing to stay
Q152: If a movie theater is going to
Q153: Which of the following provides the strongest
Q154: Why do airlines often charge students and
Q155: Which of the following statements about price
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents