Suppose an increase in population increases the demand for automobile repairs in New Haven County's market for auto repair, which is a perfectly competitive market. Which of the following is true in the short run? The market supply curve of auto repair services shifts to the left. Auto repair centers may be able to earn an economic profit. O Normal profits decrease. O The effect on equilibrium price and quantity is indeterminate. O After firms adjust to the new equilibrium, the price of auto repair services will exceed the marginal cost.

Suppose an increase in population increases the demand for automobile repairs in New Haven County's market for auto repair, which is a perfectly competitive market. Which of the following is true in the short run? The market supply curve of auto repair services shifts to the left. Auto repair centers may be able to earn an economic profit. O Normal profits decrease. O The effect on equilibrium price and quantity is indeterminate. O After firms adjust to the new equilibrium, the price of auto repair services will exceed the marginal cost.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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