If Demand Increases in a Perfectly Competitive Market

If demand increases in a perfectly competitive market,

A) then,in the short run,existing firms will find their profits diminishing,or their losses increasing
B) existing firms will earn an economic profit
C) the market price will decrease
D) each firm will produce more along its short-run supply curve and total output will increase along the short-run market supply curve
E) quantity demanded will increase and quantity supplied will decrease

Correct Answer:

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