A perfectly competitive industry is in long-run equilibrium. If demand for the product decreases, we can expect the price of the good to:
A. rise at first and then fall.
B. fall at first and then rise.
C. rise and remain at the higher price.
D. fall and remain at the lower price.
Answer: B
You might also like to view...
If the dollar depreciates relative to the Swiss franc
A) Swiss chocolate will become cheaper in the United States. B) American computers will become more expensive in Switzerland. C) Swiss chocolate will become more expensive in the United States. D) Swiss computers will become cheaper in the United States.
According to the BLS approximately 8.4 million workers are union members in the private sector and about 7.3 million workers are union members in the public sector.
a. true b. false
Economists generally assume that ____ economic growth is better for society.
A. slower B. faster C. stable D. declining
Which auctioned good is more likely to have different private values across potential bidders?
A) a truckload of sand B) a Monet painting C) a brand new car D) a gold bar