In Long-Run Equilibrium with Trade, Losses from Import Competition Will

Multiple Choice

In long-run equilibrium with trade, losses from import competition will force some firms to ______________, increasing demand for the remaining firms' output, which will then cause their demand curves to become ______________, due to the increased variety of products from _______________.

A) raise prices; steeper; new firms entering the industry
B) leave the industry; flatter; foreign firms
C) lower prices; more inelastic; new firms entering the industry
D) lay off workers; more elastic; the research and development departments in firms