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Author Question: In a perfectly competitive industry, assume there is a permanent increase in demand for a product. ... (Read 50 times)

skymedlock

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on: Jun 30, 2018
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


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djpooyouma

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Reply #1 on: Jun 30, 2018
Answer to Question 1

d

Answer to Question 2

True


skymedlock

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Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it

billybob123

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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