Asked by roshell ayeshma on Jul 11, 2024
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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 overall demand for plumbing services increases.In the short run,the price for plumbing services will _____ and total output in the market will _____.
A) fall;fall
B) not change;not change
C) rise;rise
D) rise;fall
Market Demand
The total quantity of a product or service that all consumers in a market are willing and able to purchase at various prices.
Plumbing Services
Professional services involved in installing, repairing, and maintaining the piping and fixtures associated with water distribution and waste water disposal.
Short Run
A period in economics during which at least one input (like capital) is fixed, focusing on immediate effects rather than long-term outcomes.
- Examine the effects of rising demand in markets characterized by monopolistic competition and forecast the changes in market behavior.
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Learning Objectives
- Examine the effects of rising demand in markets characterized by monopolistic competition and forecast the changes in market behavior.
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