Assume That a Decline in Consumer Demand Occurs in a Purely

Multiple Choice

Assume that a decline in consumer demand occurs in a purely competitive industry that is initially in long-run equilibrium. We can

A) predict that the new price will be greater than the original price.
B) predict that the new price will be less than the original price.
C) predict that the new price will be the same as the original price.
D) not compare the original and the new prices without knowing what cost conditions exist in the industry.