Suppose That the Market for Haircuts in a Community Is

question 112

Multiple Choice

Suppose that the market for haircuts in a community is a perfectly competitive constant-cost industry and that the market is initially in long-run equilibrium.Subsequently,an increase in population increases the demand for haircuts.In the long run,firms will _____ the market,driving the price of haircuts _____ and the profits of individual firms _____.

• A)enter;up;back to zero
• B)enter;down;back to zero
• C)leave;up;up
• D)leave;up;back to zero

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Definitions:

Corticospinal Tract

A major neural pathway that runs from the brain's cortex through the spinal cord, coordinating voluntary motor movements.

Corticobulbar Tract

Neural pathways that conduct impulses from the brain to the brainstem, influencing movements in the head and neck.

Rubrospinal Tract

A neural pathway in the central nervous system involved in the control of voluntary movements.

Vestibulospinal Tract

A neural pathway that sends information from the inner ear balance apparatus to the muscles involved in maintaining posture and balance.