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:
- There will be fewer firms and market price will be higher.
- There will be fewer firms but market price will be the same.
- There will be fewer firms and market price will be lower.
- There will be more firms and market price will be higher.
- There will be more firms but market price will be the same.
Copyright © 1995-2004 OnLineTexts.com, Inc. - All Rights Reserved