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Author Question: Under perfect competition, if an industry is characterized by positive economic profits in the short ... (Read 54 times)

Frost2351

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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.



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mtmmmmmk

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Answer to Question 1

b

Answer to Question 2

a




Frost2351

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Reply 2 on: Jul 1, 2018
:D TYSM


helenmarkerine

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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