Suppose the market for corn is a purely competitive, constant-cost industry that is in long-run equilibrium. Now assume that an increase in consumer demand occurs. After all resulting adjustments have been completed, the new equilibrium price will be the same as the initial equilibrium price, and the industry output will remain unchanged. greater than the initial price, and the new industry output will be greater than the original output. the same as the initial equilibrium price, but the new industry output will be greater than the original output. less than the initial price, but the new industry output will be greater than the original output.
Suppose the market for corn is a purely competitive, constant-cost industry that is in long-run equilibrium. Now assume that an increase in consumer demand occurs. After all resulting adjustments have been completed, the new equilibrium price will be the same as the initial equilibrium price, and the industry output will remain unchanged. greater than the initial price, and the new industry output will be greater than the original output. the same as the initial equilibrium price, but the new industry output will be greater than the original output. less than the initial price, but the new industry output will be greater than the original output.
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter22: Price Takers And The Competitive Process
Section: Chapter Questions
Problem 6CQ: Suppose that the development of a new drought-resistant hybrid seed corn leads to a 50 percent...
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Suppose the market for corn is a purely competitive, constant-cost industry that is in long-run equilibrium. Now assume that an increase in consumer demand occurs. After all resulting adjustments have been completed, the new equilibrium price will be
the same as the initial equilibrium price, and the industry output will remain unchanged.
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greater than the initial price, and the new industry output will be greater than the original output.
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the same as the initial equilibrium price, but the new industry output will be greater than the original output.
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less than the initial price, but the new industry output will be greater than the original output.
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