Suppose the market for apples and the market for oranges are perfectly competitive. If consumers suddenly began desiring more oranges and fewer apples O the market price of apples would rise creating short-run economic profits in the apple industry. the market price of oranges would rise creating short-run economic profit opportunities in the orange industry neither a. or b. are correct. O both a. and b. are correct.

Suppose the market for apples and the market for oranges are perfectly competitive. If consumers suddenly began desiring more oranges and fewer apples O the market price of apples would rise creating short-run economic profits in the apple industry. the market price of oranges would rise creating short-run economic profit opportunities in the orange industry neither a. or b. are correct. O both a. and b. are correct.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter12: Firms In Perfectly Competitive Markets

Section: Chapter Questions

Problem 12P

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