Assume a purely competitive increasing-cost industry is in long-run equilibrium.Now suppose that an increase in consumer demand occurs.After all the resulting adjustments have been completed,the new equilibrium price:
A) and industry output will be less than the initial price and output.
B) and industry output will be greater than the initial price and output.
C) will be greater,but the new output will be less than initially.
D) will be less,but the new output will be greater than initially.
Correct Answer:
Verified
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