Suppose that you observe an initial price of $20 in a perfectly competitive market. Firms are making zero economic profits. Then the market demand shrinks permanently, some firms leave the industry, and the industry returns to a long-run equilibrium. What will be the new equilibrium price, assuming cost functions of the firms in the industry remain the same? $20 Lower than $20 but exact value cannot be known without more information. O Larger than $20 but exact value cannot be known without more information. $16