If the long-run market supply curve for a good is perfectly elastic, an increase in the demand for that good will, in the long run, cause ?

A. an increase in the number of firms in the market but no increase in the price of the good
B. an increase the price of the good and an increase in the number of firms in the market
C. an increase the price of the good but no increase in the number of firms in the market
D. no impact on either the price of the good or the number of firms in the market

Correct Answer: an increase in the number of firms in the market but no increase in the price of the good ✔

Last Updated: June 11, 2019