Suppose that initially the price is $20 in a perfect competitive market. Firms are making zero economic profits. then the market demand shrink permanently, some firms leave the industry, and the industry turn to a long-term equilibrium. what will be the new equlibrium price, assuming cost conditions in the industry remain constant? -$20

-$16

-lower than $20 but exactly price not known without more information

-larger than $20 but exactly price not known without more information

This problem has been solved! see the answerwhich of the following statements is correct? the consumer price index is a measure of the overall level of prices, whereas the gdp deflator is not a measure of the overall level of prices. if, in the year 2011, the consumer price index has a value of 123.50, then the inflation rate for 2011 must be 23.50 percent. compared to the gdp deflator, the consumer price index is the more common gauge of inflation. the consumer price index and the gdp deflator reflect the goods and services bought by consumers equally well.