This topic contains a solution. Click here to go to the answer

Author Question: In a perfectly competitive industry, assume there is a permanent increase in demand for a product. ... (Read 53 times)

skymedlock

  • Hero Member
  • *****
  • Posts: 561
In a perfectly competitive industry, assume there is a permanent increase in demand for a product. The process of transition to a new long-run equilibrium will include:
 a. the exit of firms.
  b. temporarily lower production costs.
  c. both a and b.
  d. neither a nor b.

Question 2

For an inferior good, the income elasticity of demand is negative.
 a. True
  b. False
  Indicate whether the statement is true or false



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

djpooyouma

  • Sr. Member
  • ****
  • Posts: 325
Answer to Question 1

d

Answer to Question 2

True




skymedlock

  • Member
  • Posts: 561
Reply 2 on: Jun 30, 2018
Wow, this really help


chereeb

  • Member
  • Posts: 326
Reply 3 on: Yesterday
Great answer, keep it coming :)

 

Did you know?

About 80% of major fungal systemic infections are due to Candida albicans. Another form, Candida peritonitis, occurs most often in postoperative patients. A rare disease, Candida meningitis, may follow leukemia, kidney transplant, other immunosuppressed factors, or when suffering from Candida septicemia.

Did you know?

Eat fiber! A diet high in fiber can help lower cholesterol levels by as much as 10%.

Did you know?

When blood is exposed to air, it clots. Heparin allows the blood to come in direct contact with air without clotting.

Did you know?

Multiple sclerosis is a condition wherein the body's nervous system is weakened by an autoimmune reaction that attacks the myelin sheaths of neurons.

Did you know?

For high blood pressure (hypertension), a new class of drug, called a vasopeptidase blocker (inhibitor), has been developed. It decreases blood pressure by simultaneously dilating the peripheral arteries and increasing the body's loss of salt.

For a complete list of videos, visit our video library