In a perfectly competitive industry, assume there is a permanent ...

[skymedlock]

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

[djpooyouma]

Answer to Question 1

d

Answer to Question 2

True

[skymedlock]

Excellent

[Perkypinki]

Thanks for the timely response, appreciate it