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

Here, it is given that the market for rice is a perfectly competitive market and operates in the…

Answered: Consider the perfectly competitive…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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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