If Market Demand Decreases in a Market Previously in Long-Run

question 17

Multiple Choice

If market demand decreases in a market previously in long-run equilibrium,

• A)the number of firms increases as each firm downsizes.
• B)it is an indication that the industry has not kept up with new technology.
• C)market price first rises and then falls in the movement to a new long-run equilibrium.
• D)the immediate or short-run effect is a decrease in market price.
• E)the industry ceases to exist.

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Definitions:

Testator

A person who writes a will.

Forgery

The fraudulent making or altering of a writing in a way that changes the legal rights and liabilities of another and with the intent to deceive or defraud.

Legal Document

A formal document that is legally enforceable or that can serve as evidence in a legal proceeding.

Intestate

The state of dying without a will.