A Perfectly Competitive Market Is Initially in Long-Run Competitive Equilibrium

question 121

Multiple Choice

A perfectly competitive market is initially in long-run competitive equilibrium. Then, market demand falls. By the time all adjustments have been made, price will be __________ its original level if the industry is a(n) __________ costs industry.

• A)above; decreasing
• B)at; constant
• C)at; increasing
• D)below; increasing
• E)a and d

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Definitions:

Older Brother

A male sibling who is born before another sibling, often taking on roles of guidance or protection.

Younger Brother

A male sibling who is born after another sibling, sharing one or both parents in common.

Intimidating

Causing fear or apprehension often by being impressively large, powerful, intense, or capable.

Irritating

Causing annoyance, impatience, or mild anger, often through repetitive, bothersome, or frustrating behavior or occurrences.