Multiple Choice
Assume a purely competitive constant-cost industry is initially in long-run equilibrium, producing 9 million units at a market price of $18.00. Suppose that an increase in consumer demand occurs. After all economic adjustments have been completed, which output and price combination is most likely to occur?
A) 9.5 units at a price of $19.25.
B) 10 units at a price of $18.00.
C) 9 units at a price of $20.00.
D) 8 units at a price of $18.00.
Correct Answer:
Verified
Correct Answer:
Verified
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