If there is a permanent decrease in demand in a perfectly ...

[a0266361136]

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?

[sierramartinez]

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]

Great answer, keep it coming

[nathang24]

Thanks for the timely response, appreciate it