7. Again considering the restaurant whose earthquake insurance premiums rose, which of the following would we expect in the long-run when compared with the period just before the insurance premiums rose (if nothing else changes):
- An increase in prices and no change in the number of meals sold.
- An increase in prices and a decrease in the number of meals sold.
- No change in prices and no change in the number of meals sold.
- A decrease in prices and no change in the number of meals sold.
- A decrease in prices and an increase in the number of meals sold.
Copyright © 1995-2004 OnLineTexts.com, Inc. - All Rights Reserved