Economics 9708 · AS & A Level · 7.6

7.6 — practice question

What would be the short-run impact on price, output and profits of a rise in demand for the product of a monopolistically competitive firm?

  • Aprice: increase; output: increase; profits: increase
  • Bprice: increase; output: no change; profits: decrease
  • Cprice: no change; output: increase; profits: increase
  • Dprice: no change; output: no change; profits: increase

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