In a constant-cost industry, an increase in demand will be ...

[ETearle]

In a constant-cost industry, an increase in demand will be followed by
 
  A) no increase in supply.
  B) an increase in supply that will not change price from the higher level that occurs after the demand shift.
  C) an increase in supply that will bring price down to the level it was before the demand shift.
  D) an increase in supply that will bring price down below the level it was before the demand shift.
  E) a decrease in demand to keep price constant.

Question 2

Firms that have several plants that produce the same or related products are said to be:
 
  A) horizontally integrated.
  B) vertically integrated.
  C) conglomerates.
  D) cooperatives.

[kaykay69]

Answer to Question 1

C

Answer to Question 2

A