In the long run, if the demand curve in a decreasing cost market shifts up and to the right, then:
A)equilibrium price goes down and quantity goes up.
B)equilibrium price goes up and goes down.
C)equilibrium price and quantity go down.
D)equilibrium price and quantity go up.

Question

Quizplus · Accepted Answer

In a decreasing cost market, as demand increases, firms experience lower costs due to economies of scale, leading to a lower equilibrium price and higher quantity.

In the Long Run, If the Demand Curve in a Decreasing