Assume a Purely Competitive Decreasing-Cost Industry Is Initially in Long-Run

Multiple Choice

Assume a purely competitive decreasing-cost industry is initially in long-run equilibrium but then there is a decrease in market demand for the product. After all economic adjustments to this new situation have taken place, product price will be

A) higher, but total output will be lower.
B) lower, and total output will be lower.
C) higher, and total output will be higher.
D) lower, but total output will be higher.