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If the Demand Increases in a Perfectly Competitive Market,what Will

Question 153

Multiple Choice

If the demand increases in a perfectly competitive market,what will likely occur?


A) Firms will temporarily make a profit due to a higher price.
B) Firms will enter the market in hopes of capturing some profits.
C) The short-run supply curve will shift to the right, causing price to eventually fall.
D) All of these are true.

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