Under perfect competition, if an industry is characterized by positive economic profits in the short run
a. firms will leave the market in the long run and the short-run supply curve will shift outward.
b. firms will enter the market in the long run and the short-run supply curve will shift outward.
c. firms will enter the market in the long run and the short-run supply curve will shift inward.
d. firms will leave the market in the long run and the short-run supply curve will shift inward.
Question 2
Suppose that the price elasticity of demand for a product is 1 and that the price elasticity of supply is +1 . Assume also that the income elasticity of demand is +2 . Then an increase in income of 10 will raise equilibrium price by
a. 10.
b. 5.
c. 20.
d. an annual amount that cannot be determined.
A positive feedback loop.
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The cell wall of a Gram-positive bacterium, S. aureus
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economic question