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If a Perfectly Competitive Market Is in Equilibrium and Then

Question 21

Multiple Choice

If a perfectly competitive market is in equilibrium and then market demand increases,which of the following would happen?


A) producer surplus would definitely increase and consumer surplus may increase or decrease
B) producer surplus would definitely decrease and consumer surplus may increase or decrease
C) consumer surplus would definitely decrease and producer surplus may increase or decrease
D) consumer surplus would definitely increase and producer surplus may increase or decrease
E) producer and consumer surplus would remain unchanged

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