If Market Demand Decreases in a Market Previously in Long-Run

question 17

Multiple Choice

If market demand decreases in a market previously in long-run equilibrium,

• A)the number of firms increases as each firm downsizes.
• B)it is an indication that the industry has not kept up with new technology.
• C)market price first rises and then falls in the movement to a new long-run equilibrium.
• D)the immediate or short-run effect is a decrease in market price.
• E)the industry ceases to exist.

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Definitions:

Tarsal Plate

A thick, fibrous layer of connective tissue that forms the supporting structure for the eyelid.

Levator Palpebrae Superioris

A muscle in the orbit that elevates the upper eyelid.

Connective Tissue

Type of biological tissue that supports, connects, or separates different types of tissues and organs in the body, consisting of cells embedded in an extracellular matrix.

Orbicularis Oculi

A muscle surrounding the eye, responsible for closing the eyelids and enabling blinking and winking.