An Increase in the Size of the Market Due to the Creation

Multiple Choice

An increase in the size of the market due to the creation of a free trade area

A) reduces the equilibrium price and increases the number of firms.
B) increases the equilibrium price and increases the number of firms.
C) reduces the equilibrium price and decreases the number of firms.
D) increases the equilibrium price and decreases the number of firms.
E) has no effect on equilibrium price and decreases the number of firms.