Figure 10-9

-Figure 10-9 shows supply and demand conditions in a perfectly competitive industry and for a firm in that industry.Assume the industry initially has supply curve S₁ and demand curve D₁.If demand shifts to D₂, then in the short run price will

Question

Figure 10-9
Figure 10-9 -Figure 10-9 shows supply and demand conditions in a perfectly competitive industry and for a firm in that industry.Assume the industry initially has supply curve S1 and demand curve D1.If demand shifts to D2, then in the short run price will A) rise to A. B) rise to some level between A and B. C) remain at B. D) fall to C.

Figure 10-9 -Figure 10-9 shows supply and demand conditions in a perfectly competitive industry and for a firm in that industry.Assume the industry initially has supply curve S<sub>1</sub> and demand curve D<sub>1</sub>.If demand shifts to D<sub>2</sub>, then in the short run price will A) rise to A. B) rise to some level between A and B. C) remain at B. D) fall to C.

-Figure 10-9 shows supply and demand conditions in a perfectly competitive industry and for a firm in that industry.Assume the industry initially has supply curve S₁ and demand curve D₁.If demand shifts to D₂, then in the short run price will

Quizplus · Accepted Answer

In the short run, the industry supply curve is fixed at S1. With the increase in demand from D1 to D2, the equilibrium price will rise to A.

Figure 10-9 ​

Figure 10-9