Assume That a Decline in Consumer Demand Occurs in a Purely

question 164

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:

Larger

Refers to something of a greater size, volume, or amount compared to another object or compared to a previous state.

Smaller

Of less size, amount, or scale compared to others of its kind.

Environmental Uncertainty

A condition that exists when the external environment is vague, difficult to diagnose, and unpredictable.

Organizational Effectiveness

A measure of how successfully an organization achieves its goals and objectives, often evaluated through performance, adaptability, and sustainability.