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In competitive product markets, the long-run effect of an increase in demand for a product will be a(n) in wages of workers that are employed in the industry and a(n) the quantity of workers hired. Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a increase; increase b increase; decrease C decrease; decrease d decrease; increase e decrease; not changeA competitive, constant cost market is in long-run equilibrium. An increase in demand will cause which of the following to happen in the short run? In the long run? An initial: Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a increase in the typical firm's output; from that short-run point, a decrease in the typical firm's output in the long run b decrease in the typical firm's output; from that short-run point, a decrease in the typical firm's output in the long run c increase in the typical firm's output; from that short-run point, an increase in the typical firm's output in the long run d decrease in the typical firm's output; from that short-run point, an increase in the typical firm's output in the long run increase in the typical firm's output; no change in the long runA fall in demand in a perfectly competitive market that is in a long-run equilibrium will do which of the following? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Cause firms to cut back production in the short run and some to leave the industry in the long run. b Cause firms to cut back production in the short run, but firms will not necessarily leave the industry in the long run. C Firms will not necessarily change production in the short run, but will leave the industry in the long run. d Firms will reduce production to zero in the short run, but we cannot tell what they will do in the long run.Consider the supply of goods in a perfectly competitive industry. Will supply in the short run he more elastic or less elastic than in supply in the long run? Select an answerand submit. For keyboard navigation, use the upfdown arrow keys to select an answer. a The short run supply will be more elastic b The long run supply will he more elastic c Given that it is the same good. the elasticity should not change in the long run. 1:l One cannot tell, as it will depend upon how demand changes. Suppose that demand increases. Compare the long-run results of the change in a constant cost industry and an increasing cost industry that initially had identical prices. Ultimately, prices will be and quantities will be in the constant-cost industry than in the increasing-cost industry. Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a higher; higher b higher; lower c lower; lower d lower; higher e the same; the sameThe market described in the graph is perfectly competitive. The demand Market Supply and Demand 18.00 curve for any firm in the market is: 17.50 17.00 16.50 $ 16.00 Market Market so 15.50 Supply Demand 8 15.00 & 14.50 14.0D 13.50 1,000 2,000 3,000 4,000 5,000 6,000 7.000 8,0DO Quantity (thousands) Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Perfectly vertical at a quantity of 6,000,000 units. b Whatever each firm decides it to be. C The same as the market demand curve described in the table. d Perfectly flat (horizontal) for $17.00 per unit
