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AveGali [126]
3 years ago
13

Suppose a firm in a competitive market, like the one depicted in panel (a), observes market price rising from P1 to P2. Which of

the following could explain this observation?
a. The entry of new firms into the market.
b. The exit of existing consumers from the market.
c. An increase in market supply from S0 to S1.
d. An increase in market demand from D0 to D1.
Business
1 answer:
MakcuM [25]3 years ago
5 0

Answer:

The correct answer is D) An increase in market demand from D0 to D1

Explanation:

In a competitive market, there are enough firms so that no firm can influence prices significantly.

In such conditions, and holding all other variables constant, a increase in market price from P1 to P2 can only result from an increase in demand.

If more consumers want a product, and supply remains the same, the price of it will rise.

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Answer:

This is a part of my Economic Resources doc and I'm not sure about the second part of the question but I hope it helps!

Explanation:

Economic Resources

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What you need to know:

What is a PRODUCER?

a person, franchise, brand or country etc. that makes, grows, or produces goods and services for sale to customers or consumers.

What is a RESOURCE?

a stock or supply of goods, materials, and products that can be bought  by a person or organization in order to function effectively.

What is an ECONOMIC resource?

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Classification of Economic Resources:

Natural resources (LAND)

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3 0
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Answer:

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Explanation:

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Explanation:

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