Multiple Choice
Assume that a constant-cost,perfectly competitive market is initially in long-run equilibrium.After all long-run adjustments are made,which of the following would occur as a result of an increase in the price of a complement to this industry's product?
A) The market price would remain unchanged;the market quantity would rise.
B) The market price would rise;the market quantity would fall.
C) The market price would remain unchanged;the market quantity would fall.
D) Both the market price and the market quantity would fall.
E) Both the market price and the market quantity would rise.
Correct Answer:
Verified
Correct Answer:
Verified
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