28. Again considering a perfectly competitive industry for which property taxes increased, over time the industry will adjust to a new long-run equilibrium. The new equilibrium will differ from the old in that:
  1. There will be fewer firms and market price will be higher.
  2. There will be fewer firms but market price will be the same.
  3. There will be fewer firms and market price will be lower.
  4. There will be more firms and market price will be higher.
  5. There will be more firms but market price will be the same.

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