Suppose a perfectly competitive increasing-cost industry is in long-run equilibrium.Now assume that a decrease in consumer demand occurs. After all resultingadjustments have been completed, the new equilibrium price:Owill be less than the initial price, but the new industry output will be greater thanthe original output.and industry output will be less than the initial price and output.and industry output will be greater than the initial price and output.will be greater than the initial price, but the new industry output will be less thanthe original output.

Let it is purely competitive, rising-cost industry is in long-term equilibrium. Now consider that a…

tments have been completed, the new equilibrium price: rill be less than the initial price, but the new industry output will be gre he original output. nd industry output will be less than the initial price and output. and industry output will be greater than the initial price and output. will be greater than the initial price, but the new industry output will be

tments have been completed, the new equilibrium price: rill be less than the initial price, but the new industry output will be gre he original output. nd industry output will be less than the initial price and output. and industry output will be greater than the initial price and output. will be greater than the initial price, but the new industry output will be

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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