Suppose That a Long-Run Adjustment in a Perfectly Competitive Industry

question 136

Multiple Choice

Suppose that a long-run adjustment in a perfectly competitive industry results in decreased industry output but leaves price unchanged.Which of the following must be true?

• A)The market demand curve did not shift
• B)The market demand curve shifted left; the market supply curve shifted right
• C)The market supply curve shifted left; the market demand curve shifted right
• D)Both market supply and demand increased, but supply increased more than demand
• E)The industry is a constant-cost industry

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Definitions:

Throws a Tantrum

A sudden, intense expression of anger or frustration, often characterized by shouting, crying, or physical outbursts, commonly observed in children.

Id

A term from psychoanalytic theory referring to the part of the psyche associated with instinctual impulses and demands for immediate satisfaction of basic needs.

Conscience

An inner feeling or voice viewed as acting as a guide to the rightness or wrongness of one's behavior.

Superego

In psychoanalytic theory, the part of the personality responsible for moral standards and self-criticism.