3. Starting from a long-run equilibrium in a competitive market, if there is a persistent decrease...

 

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3. Starting from a long-run equilibrium in a competitive market, if there is a persistent decrease in demand, there will be an adjustment toward a new long-run equilibrium that will involve a. more firms operating at a smaller scale and selling at a higher price. b. fewer firms operating at the original scale and selling at the original price. c. fewer firms operating at a larger scale and selling at the original price d. more firms operating at a smaller scale and selling at the original price. 5. Suppose that firms in an industry are producing at their long-run quantity. The long-run impact of an increase in demand in a perfectly competitive industry is that the number of firms (n) will price (p) will, and output per firm (q) will [Hint: To determine the long-run impact you must compare the long run equilibrium values of n, p, and q before and after the increase in demand.] a. stay constant; rise; rise b. rise; stay constant; rise c. rise; rise; stay constant d. rise; rise; rise e. rise; stay constant; stay constant 3. Starting from a long-run equilibrium in a competitive market, if there is a persistent decrease in demand, there will be an adjustment toward a new long-run equilibrium that will involve a. more firms operating at a smaller scale and selling at a higher price. b. fewer firms operating at the original scale and selling at the original price. c. fewer firms operating at a larger scale and selling at the original price d. more firms operating at a smaller scale and selling at the original price. 5. Suppose that firms in an industry are producing at their long-run quantity. The long-run impact of an increase in demand in a perfectly competitive industry is that the number of firms (n) will price (p) will, and output per firm (q) will [Hint: To determine the long-run impact you must compare the long run equilibrium values of n, p, and q before and after the increase in demand.] a. stay constant; rise; rise b. rise; stay constant; rise c. rise; rise; stay constant d. rise; rise; rise e. rise; stay constant; stay constant

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