Consider the perfectly competitive market for rice, that is in long-run equilibrium. An emigration wave decreases the number of consumers, many of which like rice. The likely consequence of this in the short run is A decrease in the quantity produced by each firm, but at a higher profit. A decrease in the market price and profits for each firm An increase in the market quantity, but a decrease in the market price An increase in the quantity produced by each firm, but no change in profits

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
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Chapter1: Making Economics Decisions
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Consider the perfectly competitive market for rice, that is in long-run equilibrium. An emigration wave decreases the number of consumers, many of which like rice. The likely consequence of this in the short run is

  • A decrease in the quantity produced by each firm, but at a higher profit.
  • A decrease in the market price and profits for each firm
  • An increase in the market quantity, but a decrease in the market price
  • An increase in the quantity produced by each firm, but no change in profits
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