Without any restrictions in a perfectly competitive market,if there is a sudden rightward shift in the demand for a good,sellers of the good will ________.
A) increase the supply of the good at the same price
B) increase the quantity of the good supplied in the market
C) decrease the supply of the good at the same price
D) decrease the quantity supplied

Question

Quizplus · Accepted Answer

In a perfectly competitive market, if there is a sudden rightward shift in the demand for a good, the equilibrium price and quantity will both increase. Sellers will respond to the increase in demand by increasing the quantity of the good supplied in the market, as they can sell more at the higher price without facing any restrictions or constraints. Therefore, option B is the best choice.

Without Any Restrictions in a Perfectly Competitive Market,if There Is