BuyFindarrow_forward

Microeconomics

13th Edition
Roger A. Arnold
ISBN: 9781337617406

Solutions

Chapter
Section
BuyFindarrow_forward

Microeconomics

13th Edition
Roger A. Arnold
ISBN: 9781337617406
Textbook Problem

If a perfectly competitive market in long-run equilibrium witnesses an increase in demand, what will happen to price?

To determine

Effect of increase in demand on price.

Explanation

If the perfect competitive market is in long run equilibrium, it witnesses an increase in demand and decrease in price. In the short run, the increase in demand increases the price of the goods and services in the market (ceteris paribus). It leads to maximize the profit of the firm. Higher or positive economic profit attracts the new firms to enter into the market. Increase in the number of firms in the market increases the market supply. Increase in the supply leads to fall or drop in the price level...

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

What is a mutually exclusive project? How should managers rank mutually exclusive projects?

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

What rights do stockholders have?

Foundations of Business (MindTap Course List)

What is a share premium?

Accounting (Text Only)