Describe the course of events in a competitive market following a permanent decrease in demand. What happens

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Describe the course of events in a competitive market following a permanent decrease in demand. What happens to output, price, and economic profit in the short run and in the long run?

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Microeconomics

ISBN: 978-0133019940

11th edition

Authors: Michael Parkin

Question Posted: Nov 22, 2017 08:20 AM

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Describe the course of events in a competitive market following a permanent decrease in demand. What happens

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A permanent decrease in demand leads to a smaller output and a smaller number of firms Decrease in demand lowers the price and firms in the competitive market incur economic loss This economic loss in...View the full answer

Microeconomics

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