Q
If the long-run market supply curve for a good is perfectly elastic, an increase in the demand for that good will, in the long run, cause ?
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A
A. An increase in the number of firms in the market but no increase in the price of the good
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B
B. An increase the price of the good and an increase in the number of firms in the market
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C
C. An increase the price of the good but no increase in the number of firms in the market
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D
D. No impact on either the price of the good or the number of firms in the market
Correct Answer:
A. A. An increase in the number of firms in the market but no increase in the price of the good
