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The Model of Monopolistic Competition Characterizes a City's Market for Plumbing

Question 110

Multiple Choice

The model of monopolistic competition characterizes a city's market for plumbing services.Suppose that the market is initially in long-run equilibrium,and then overall demand for plumbing services increases.In the short run,the price for plumbing services will _____ and total output in the market will _____.


A) fall;fall
B) not change;not change
C) rise;rise
D) rise;fall

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