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Author Question: If there is a permanent decrease in demand in a perfectly competitive market, then there is an ... (Read 25 times)

a0266361136

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on: Jun 29, 2018
If there is a permanent decrease in demand in a perfectly competitive market, then there is an initial ________ in price and existing firms ________.
 
  A) rise; make an economic profit
  B) rise; incur an economic loss
  C) fall; make an economic profit
  D) fall; incur an economic loss

Question 2

The price of a computer is 1,000 and the price of a car is 12,000. What is the relative price of a car? What is the relative price of a computer?
 
  What will be an ideal response?


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sierramartinez

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Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

The relative price of a car is 12,000 per car  1,000 per computer = 12 computers per car. The relative price of a computer is 1,000 per computer  12,000 per car = 0.083 of a car per computer.


a0266361136

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Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

amit

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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