Author Question: In the short run, an increase in demand for a good that is sold in a perfectly competitive market ... (Read 76 times)

shenderson6 · **on:** Jun 29, 2018

In the short run, an increase in demand for a good that is sold in a perfectly competitive market

A) increases the number of firms in the market.
B) increases the economic profits of existing firms in the market.
C) has no effect on the price.
D) causes more firms to shut down.

Question 2

The curve in the above figure shows alternative combinations of gasoline and coffee that Sam likes equally well. This curve is called

A) a budget line.
B) a demand curve.
C) a consumption curve.
D) an indifference curve.