Suppose that the demand for the product decreases. Arrange the events in the order in which they occur after demand decreases until price returns to long‑run equilibrium. Note that not all of the events need to be placed. After demand decreases firms enter price increases supply decreases firms exit price decreases supply increases Until the market returns to long‑run equilibrium price
Suppose that the demand for the product decreases. Arrange the events in the order in which they occur after demand decreases until price returns to long‑run equilibrium. Note that not all of the events need to be placed. After demand decreases firms enter price increases supply decreases firms exit price decreases supply increases Until the market returns to long‑run equilibrium price
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter8: Understanding Markets And Industry Changes
Section: Chapter Questions
Problem 3MC
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Suppose that the demand for the product decreases. Arrange the events in the order in which they occur after demand decreases until price returns to long‑run equilibrium. Note that not all of the events need to be placed.
After demand decreases
firms enter
price increases
supply decreases
firms exit
price decreases
supply increases
Until the market returns to long‑run
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