Exhibit 9-1 -Refer to Exhibit 9-1. If the market demand curve is D 3 , what happens over time?

If the market demand curve is D3, it suggests an increase in demand. Over time, some existing firms may increase capital input to expand production and meet the higher demand.

Exhibit 9-1 -Refer to Exhibit 9-1. If the market demand curve is D 3 , what happens over time?

If the market demand curve is D3, it suggests an increase in demand. Over time, some existing firms may increase capital input to expand production and meet the higher demand.

Solved

Exhibit 9-1 -Refer to Exhibit 9-1. If the Market Demand Curve Is

Question 53

Multiple Choice

Exhibit 9-1 Exhibit 9-1 -Refer to Exhibit 9-1. If the market demand curve is D<sub>3</sub>, what happens over time? A) Some existing firms increase capital input. B) Firm exit occurs. C) Some existing firms decrease labor input. D) Market price decreases. E) Most firms do nothing.
-Refer to Exhibit 9-1. If the market demand curve is D₃, what happens over time?

A) Some existing firms increase capital input.
B) Firm exit occurs.
C) Some existing firms decrease labor input.
D) Market price decreases.
E) Most firms do nothing.

Correct Answer: