True or false?

When demand is fluctuating, commodity markets that are operating at capacity tend to experience more volatility in their prices than do commodity markets with excess capacity.

In a stable competitive industry, a negative demand shock will necessitate the exit of some firms and will lead to a decrease in industry capacity in the long run, provided that this shock is known to be permanent and no other shocks are anticipated.

In a competitive industry, an increase in the cost of capital will make it less likely that new firms enter this industry.