Question

In the short run, an increase in demand will a. induce firms to charge a higher...

In the short run, an increase in demand will

a.

induce firms to charge a higher price and produce at the same level of output.
b.

induce firms to produce at a larger level of output as price increases.
c.

generate a low price as the quantity supplied increases.
d.

induce higher wages for workers in the industry.
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Answer #1

OPTION B

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