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Figure 14-7 -Refer to Figure 14-7.If the Market Starts in Equilibrium at Starts

Question 187

Multiple Choice

Figure 14-7
Figure 14-7 -Refer to Figure 14-7.If the market starts in equilibrium at point C in panel (b) ,a decrease in demand will ultimately lead to A) more firms in the industry, but lower levels of production for each firm. B) fewer firms in the market. C) a new long-run equilibrium at point D in panel (b) . D) lower prices once the new long-run equilibrium is reached.
-Refer to Figure 14-7.If the market starts in equilibrium at point C in panel (b) ,a decrease in demand will ultimately lead to

A) more firms in the industry, but lower levels of production for each firm.
B) fewer firms in the market.
C) a new long-run equilibrium at point D in panel (b) .
D) lower prices once the new long-run equilibrium is reached.

Correct Answer: