Suppose, as a Result of a Long-Run Adjustment in a Perfectly

Multiple Choice

Suppose, as a result of a long-run adjustment in a perfectly competitive industry to a change in demand, price and output both fell.Therefore, demand must have __________ in this __________ industry.

A) fallen; increasing cost
B) fallen; decreasing cost
C) increased; increasing cost
D) increased; decreasing costs
E) decreased; constant cost