Consider a Competitive Market with a Large Number of Identical

Multiple Choice

Consider a competitive market with a large number of identical firms. The firms in this market do not use any resources that are available only in limited quantities. In this market, an increase in demand will

A) increase price in the short run but not in the long run.
B) increase price in the long run but not in the short run.
C) increase price both in the short and the long run.
D) not affect price in either the short or the long run.