Answered
Refer to Figure 14-7. Assume that the market starts in equilibrium at point W in graph (b) and that graph (a) illustrates the cost curves facing individual firms. Suppose that demand increases from D0 to D1. Which of the following statements is correct?
A) Points W, Y, and Z represent both short-run and long-run equilibria.
B) Points W, Y, Z, and X represent short-run equilibria.
C) Points W, Y, and Z represent long-run equilibria.
D) Points W and Z represent long-run equilibria.
On Jun 30, 2024