Consider the market for shampoo, which starts at an equilibrium. Suppose that over the long-run, the shampoo market experiences two major industry shocks.

First, a number of new firms producing shampoo have entered the market. Secondly, this has been accompanied by a growth in the number of households that participate in the shampoo market, increasing the firms' consumer base.

How does the new, long-run market equilibrium compare to the initial market equilibrium?

-P increases, Q increases

-P decreases, Q decreases

-P increases, Q decreases

-P decreases, Q increases

-P change is ambiguous, Q change is ambiguous

-P increases, Q change is ambiguous

-P decreases, Q change is ambiguous

-P change is ambiguous, Q increases

-P change is ambiguous, Q decreases