Multiple Choice
The diagram concerns supply adjustments to an increase in demand (D₁ to D₂) in the immediate market period, the short run, and the long run. In the long run, the increase in demand will
A) have no effect on either equilibrium price or quantity.
B) increase equilibrium price but not equilibrium quantity.
C) increase equilibrium quantity but not equilibrium price.
D) increase both equilibrium price and quantity.
Correct Answer:
Verified
Correct Answer:
Verified
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