Assume a purely competitive increasing-cost industry is initially in long-run equilibrium but then there is a decrease in consumer demand. After all economic adjustments to this new situation have taken place, product price will be:
A. lower, but total output will be higher.
B. higher, but total output will be lower.
C. higher, and total output will be higher.
D. lower, and total output will be lower.
Answer: D
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