Suppose That the Garden Gnome Industry Was in Long-Run Equilibrium

question 2

Multiple Choice

Suppose that the garden gnome industry was in long-run equilibrium given the circumstances described .Suppose, that it was discovered to everyone's surprise on January 1, 1993, after it was too late to change orders for gnome molds, that the cost of the plaster and labor needed to make a gnome had changed to $6.If the demand curve does not change, what will happen to the equilibrium price of gnomes?

• A)Stays constant.
• B)Falls by $1.
• C)Rises by $6.
• D)Rises by $1.
• E)Falls by $3.

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Definitions:

Purchase Decision

A buyer’s decision to purchase something.

Preapproach

The preparatory phase where a salesperson gathers information and plans strategies before engaging with a potential customer.

Buying Center

A group of individuals within an organization who are responsible for making purchasing decisions, including evaluating and selecting products or services.

Vendor Analysis

The process of evaluating suppliers based on various criteria such as price, quality, reliability, and service to make informed procurement decisions.