Suppose that a competitive industry is in long-run competitive equilibrium. Then the price of a substitute good
Question:
Suppose that a competitive industry is in long-run competitive equilibrium. Then the price of a substitute good (in consumption) decreases. What will happen in the short run to
a. The market demand curve?
b. The market supply curve?
c. Market price?
d. Market output?
e. The firm’s output?
f. The firm’s profit?
What will happen in the long run?
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a The market demand will decrease and demand curve will ...View the full answer
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Nikita Gupta
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Related Book For 
Managerial Economics Foundations of Business Analysis and Strategy
ISBN: 978-0078021909
12th edition
Authors: Christopher Thomas, S. Charles Maurice
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