Multiple Choice
The model of monopolistic competition characterizes a city's market for plumbing services. Suppose that the market is initially in long-run equilibrium, and then demand for plumbing services increases. In the short run, plumbing services' price will _____ and output will _____.
A) fall; fall
B) not change; not change
C) rise; rise
D) rise; fall
Correct Answer:
Verified
Correct Answer:
Verified
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