10. Once more considering the effect of a reduction in the drinking age on the bar business. Comparing a new long run equilibrium with the old we expect:
  1. More bars, but profits are back to zero.
  2. Fewer bars but profits are back to zero.
  3. The same number of bars but profits are higher.
  4. Fewer bars but profits are higher.
  5. More bars, but with positive profits.

Copyright © 1995-2004 OnLineTexts.com, Inc. - All Rights Reserved