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 price decreases firms exit supply decreases price increases firms enter Until the market returns to long-run equilibrium price Answer Bank supply increases
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 price decreases firms exit supply decreases price increases firms enter Until the market returns to long-run equilibrium price Answer Bank supply increases
Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781305971509
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter5: Elasticity And Its Application
Section: Chapter Questions
Problem 4CQQ
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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
price decreases
firms exit
supply decreases
price increases
firms enter
Until the market returns to long-run equilibrium price
Answer Bank
supply increases](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbec413ea-2d05-4653-b1c4-246159b4cecd%2F950924fa-4674-4d98-9eb7-8089596b765d%2F222gr3r.png&w=3840&q=75)
Transcribed Image Text: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
price decreases
firms exit
supply decreases
price increases
firms enter
Until the market returns to long-run equilibrium price
Answer Bank
supply increases
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