The entry of new firms into a perfectly competitive market will ...

[craiczarry]

The entry of new firms into a perfectly competitive market will cause:
 
  A) both the equilibrium price and quantity to increase.
  B) both the equilibrium price and quantity to decrease.
  C) the equilibrium price to increase but the equilibrium quantity to decrease.
  D) the equilibrium price to decrease but the equilibrium quantity to increase.

Question 2

A relative price is the product of two money prices.
 
  Indicate whether the statement is true or false

[anyusername12131]

Answer to Question 1

D

Answer to Question 2

FALSE