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7) Yurtaqua. is the only supplier of bottled drinking water in Kirgehir. Its positive economic profits in the short run attract new companies to the market. If new companies producing their own line of bottled drinking water enter the market, which of the following statements is likely to be true? A) The price elasticity of demand for Yurtaqua.'s bottled drinking water is likely to remain the same. B) The price elasticity of demand for Yurtaqua.'s bottled drinking water is likely to decrease. C) The profits Yurtaqua.eam on their line of bottled drinking water is likely to increase. D) The price elasticity of demand for Yurtaqua. bottled drinking water is likely to increase.

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7) Yurtaqua. is the only supplier of bottled drinking water in Kirgehir. Its positive economic profits in the short run attract new companies to the market. If new companies producing their own line of bottled drinking water enter the market, which of the following statements is likely to be true? A) The price elasticity of demand for Yurtaqua.'s bottled drinking water is likely to remain the same. B) The price elasticity of demand for Yurtaqua.'s bottled drinking water is likely to decrease. C) The profits Yurtaqua.eam on their line of bottled drinking water is likely to increase. D) The price elasticity of demand for Yurtaqua. bottled drinking water is likely to increase.

7) Yurtaqua. is the only supplier of bottled drinking water in Kirgehir. Its positive economic profits in the short run attract new companies to the market. If new companies producing their own line of bottled drinking water enter the market, which of the following statements is likely to be true? A) The price elasticity of demand for Yurtaqua.'s bottled drinking water is likely to remain the same. B) The price elasticity of demand for Yurtaqua.'s bottled drinking water is likely to decrease. C) The profits Yurtaqua.eam on their line of bottled drinking water is likely to increase. D) The price elasticity of demand for Yurtaqua. bottled drinking water is likely to increase.

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D) The price elasticity of demand for Yurtaqua.'s bottled drinking water is likely to increase.<br /><br />Explanation: When new companies enter a market, they bring new products and options for consumers. This increases competition and gives consumers more choices. As a result, the demand for the existing product (in this case, Yurtaqua's bottled drinking water) may become more sensitive to price changes, leading to an increase in price elasticity of demand.
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