Suppose there is a fall in the demand for shoes, which are provided by a competitive constant-cost industry.
a. Does the price of shoes change by more in the short run or in the long run?
b. Does the industry-wide quantity change by more in the short run or in the long run?
c. Does the quantity provided by each individual shoemaker change by more in the short run or in the long run?
d. Do the profits of shoemakers change by more in the short run or in the long run?