​A Sudden Fall in the Market Demand in a Competitive

question 23

Multiple Choice

​A sudden fall in the market demand in a competitive industry leads to

• A)​A short run market equilibrium price higher than the original equilibrium
• B)A market equilibrium price lower than the short run price
• C)Some firms exiting the market
• D)​All of the above

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Definitions:

Lagging Indicator

Any metric where performance is predicted by performance in another metric.

Leading Indicator

Any metric where performance is predictive of performance in another metric.

Sustainability Efforts

Initiatives and practices aimed at meeting current needs without compromising the ability of future generations to meet theirs, often focusing on environmental preservation.

Protecting the Environment

Actions and policies designed to preserve and improve the natural environment from degradation and pollution.