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):
  1. An increase in prices and no change in the number of meals sold.
  2. An increase in prices and a decrease in the number of meals sold.
  3. No change in prices and no change in the number of meals sold.
  4. A decrease in prices and no change in the number of meals sold.
  5. A decrease in prices and an increase in the number of meals sold.

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