Assume That a Decline in Consumer Demand Occurs in a Purely

question 148

Multiple Choice

Assume that a decline in consumer demand occurs in a purely competitive industry that is initially in long-run equilibrium.We can

• A)predict that the new price will be greater than the original price.
• B)predict that the new price will be less than the original price.
• C)predict that the new price will be the same as the original price.
• D)not compare the original and the new prices without knowing what cost conditions exist in the industry.

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Definitions:

Model Business Corporation Act

A model set of laws prepared by legal experts to guide states in the development of their corporate statutes.

Shares

Units of ownership in a corporation or financial asset that represent an equal proportion of its capital.

Benefit

An advantage, profit, or gain received or enjoyed by an individual or entity, often as a result of a contract, employment, or other agreement.

Promoter

An individual or company who takes initiative to organize, finance, or promote and start up a new business venture or event.