If there is a permanent increase in demand for the product of a ...

[Zulu123]

If there is a permanent increase in demand for the product of a perfectly competitive industry, the process of transition to a new long-run equilibrium will include:
 a. the entry of new firms.
  b. temporarily higher profits.
  c. both a and b.
  d. neither a nor b.

Question 2

If demand for a good is price elastic, it must also be income elastic.
 a. True
  b. False
  Indicate whether the statement is true or false

[Jane]

Answer to Question 1

c

Answer to Question 2

False

[Zulu123]

Thanks for the timely response, appreciate it

[amandanbreshears]

TYSM