If there is an increase in market demand in a perfectly competitive market, then in the short run
A)there will be no change in the demand curves faced by individual firms in the market.
B)the demand curves facing firms will shift downward.
C)the demand curves facing firms will become more elastic.
D)profits will rise.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, an increase in market demand leads to higher prices and quantities, which typically results in increased profits for firms in the short run, as they can sell more at a higher price before new firms enter the market or existing firms adjust fully.

If There Is an Increase in Market Demand in a Perfectly