In a perfectly competitive industry, an increase in market demand increases:
A)each of the firms' share of total output in the long- run.
B)price in both the short- and the long- run.
C)price in the short- run, but has no effect on the long- run price.
D)quantity supplied in both the short- and the long- run.

Question

Quizplus · Accepted Answer

In a perfectly competitive industry, an increase in market demand increases the quantity supplied in both the short- and the long- run.

In a Perfectly Competitive Industry, an Increase in Market Demand