1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
yarga [219]
3 years ago
9

If an industry is in long-run competitive equilibrium and experiences a decrease in demand, then as a result the equilibrium pri

ce will __________, which will cause the representative firm's __________ curve to shift downward and some firms will __________ the industry.
Business
1 answer:
ale4655 [162]3 years ago
7 0

Answer:

Price will fall , demand curve shift downward , some firms exit

Explanation:

This is a case of perfectly competitive firms - who have same products, same prices, no supernormal profits or abnormal losses.

From a long run equilibrium of normal profits, if there is decrease in industry demand : The firms' identical demand would also decrease, downward sloping demand curve would shift leftwards / downwards. Decreased demand would reduce the over all price in the industry. So, firms will start incurring losses. Hence, many firms will exit the industry. Firms exit would decrease market supply.

Decreased supply would increase market price. Profit would increase at higher price & short run loss (due to demand decrease) would disappear, industry would resume again long run normal profit equilibrium.

You might be interested in
Is it reasonable to assume that treasury bonds will provide higher returns in recessions than in booms?
Annette [7]
It is indeed reasonable.We know this because interest rates rise when the economy is booming and fall when the economy goes into a recession which is known as procyclic movement. What happens is that during recessions the government usually tries to keepcinterest rates low in order to stimulate investment. It is good because bond prices <span>and interest rates go in opposite directions so bond prices will rise when recession starts. </span>
8 0
3 years ago
Read 2 more answers
The aggregate quantity of goods and services demanded changes as the price level rises because
makvit [3.9K]

Answer:

a.

Explanation:

The aggregate quantity of goods and services demanded changes as the price level rises because real wealth falls causing interest rates to rise, and this in term causes the dollar to appreciate since the interest rates are for products and services within the country and not foreign goods or services. Which as the dollar appreciates it means that foreign goods and services will become cheaper or that their relative price will fall.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

4 0
2 years ago
Contributions by a self-employed individual to a SEP plan for 2019 are limited to the lesser of a percent of net earned income o
andrezito [222]

e.  $0

SEP PLANS ONLY PERMITS EMPLOYER CONTRIBUTIONS.FOR A SELF -EMPLOYED INDIVIDUAL,CONTRIBUTIONS ARE LIMITED TO 25% OF YOUR NET EARNINGS FROM SELF-EMPLOYMENT (NOT INCLUDING CONTRIBUTIONS FOR YOURSELF) UP TO $57,000 (FOR 2020) ; $56,000 FOR 2019.

6 0
3 years ago
John would like to move from the city into the suburbs and has been saving up a large down payment for a home. Which is the most
Simora [160]
Im 100 percent sure that the anser is c
3 0
3 years ago
If possible at either your place of employment or your school, attempt to determine how easy it would be to perform dumpster div
victus00 [196]
<span>Working for a mental health agency, it is next to impossible to access information. Our agency is required by law to maintain all client records for 7 years in a secured area (limited access by Executive Director & Director of Operations, No access by employees). After 7 years they are to be disposed of properly. Our agency shreds our documents personally as to not allow a private company to do so, hence there is no breach of confidentiality. Then a private company (document disposal company) removes the shredded documentation for destruction. So it would be impossible (or at least, improbable) to obtain access to our organization information through dumpster diving.</span>
3 0
3 years ago
Other questions:
  • Last year, T-bills returned 1.8 percent while your investment in large-company stocks earned an average of 5.8 percent. Which on
    13·1 answer
  • _____ is the degree to which a job requires completion of a whole or identifiable piece of work, such as assembling an entire br
    12·1 answer
  • When megan purchased several bottles of pepsi beverages and snacks to bring to her family's holiday celebration, it represented
    9·1 answer
  • When you choose a medium, you are deciding how you will decode the message for transmission. select one:
    12·1 answer
  • Latoya as 50 shares of stock in ABC company worth $35.75 a share, a car worth about $5,600, and a collection of figurines worth
    12·1 answer
  • The following information is available for a company's utility cost for operating its machines over the last four months. Month
    12·1 answer
  • How do u feel about colorado’s position
    14·1 answer
  • Why did people demand not just banking and stock market reform but also new forms of government after the Great Depression?
    9·1 answer
  • Sales on account for the first two months of the current year are budgeted as follows:
    10·1 answer
  • Some consumer researchers focus on one specific trait, such as conscientiousness, that exists across a number of consumers, to p
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!