Exhibit 7-19 Long-run perfectly competitive industry
?
As shown in Exhibit 7-19, assume that a perfectly competitive industry is in long-run equilibrium at point A. If the demand curve shifts from D1 to D2, the adjustment sequence between points will be:
A. A to B, then back to A.
B. A to D, then back to A.
C. A to D, then to C.
D. A to B, then to C.
Answer: D
Economics
You might also like to view...
Which of the following best measures improvements in the standard of living of a nation?
A. growth of real GDP B. growth of nominal GDP C. growth of real GDP per capita D. growth of national income
Economics
In many cases, it is reasonable to refer to the ________________ as the price.
a. budget constraint b. sunk cost c. opportunity cost d. budget constraint
Economics
What are the coordinates of the new equilibrium point established after the price increase?
a. P1; Q1
b. P2; Q2
c. P1; Q2
d. P2; Q1
Economics
A vertical long-run Phillips curve is a vertical straight line at the natural rate of unemployment.
Answer the following statement true (T) or false (F)
Economics