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If a Constant-Cost, Perfectly Competitive Industry Experiences an Increase in the Demand

Question 330

Multiple Choice

If a constant-cost, perfectly competitive industry experiences an increase in the demand for its product, we would expect


A) only the market price of the good to increase.
B) both the market price and quantity supplied to increase.
C) decreases in the market price, but increases in quantity supplied.
D) only the quantity supplied of the product to increase.

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