Suppose that a competitive industry is buying and selling at an equilibrium price of $12. Now suppose that demand increases. If the market is an increasing cost industry, which of the following would we expect to happen in the long run? (select all that apply) The equilibrium price will be lower than $12 in the long run The equilibrium price will be at the minimum firm's LAC The equilibrium price will stay at $12 in the long run The equilibrium price will be higher than $12 in the long run

Suppose that a competitive industry is buying and selling at an equilibrium price of $12. Now suppose that demand increases. If the market is an increasing cost industry, which of the following would we expect to happen in the long run? (select all that apply) The equilibrium price will be lower than $12 in the long run The equilibrium price will be at the minimum firm's LAC The equilibrium price will stay at $12 in the long run The equilibrium price will be higher than $12 in the long run

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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