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-Assume the Initial Equilibrium Is at Point D in Figure

Question 163

Multiple Choice

-Assume the initial equilibrium is at point D in Figure 9-13.If the market demand curve shifts from D₁ to D₂,and this results in entry of new firms in the long-run,the new equilibrium in this increasing-cost industry will be A) both C and E B) both D and E C) at a price less than P₁ D) at a price higher than P₁ E) at an output greater than Q₁
-Assume the initial equilibrium is at point D in Figure 9-13.If the market demand curve shifts from D₁ to D₂,and this results in entry of new firms in the long-run,the new equilibrium in this increasing-cost industry will be


A) both C and E
B) both D and E
C) at a price less than P₁
D) at a price higher than P₁
E) at an output greater than Q₁

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