Industry X,which Is Perfectly Competitive,is in Long-Run Equilibrium

question 17

Multiple Choice

Industry X,which is perfectly competitive,is in long-run equilibrium.Assume a new law is passed that requires employers in industry X to provide health insurance to previously uninsured employees.As a result of this new requirement we would expect to observe:

• A)a decrease in price and an increase in total output in industry X.
• B)a decrease in price and total output in industry X.
• C)an increase in price and a decrease in total output in industry X.
• D)an increase in price and total output in industry X.

---

Definitions:

Anxiety

A mental health disorder characterized by feelings of worry, anxiety, or fear that are strong enough to interfere with one's daily activities.

Underestimate

To assess something as smaller or less important than it actually is; the act of valuing or judging something below its true value or potential.

Overestimate

To assess or regard something as more extensive, important, or capable than it actually is.

Marijuana

A psychoactive drug from the Cannabis plant, used both medicinally and recreationally for its psychoactive effects.