Consumers become more carbohydrate-conscious

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Reference no: EM13837725

Suppose cookie sales fall as consumers become more carbohydrate-conscious. If the cookie industry is a constant-cost, perfectly competitive industry, this decline in market demand will cause market supply to?

1-decrease in the long run until the equilibrium price is again equal to minimum average total cost.

2-increase in the long run until the equilibrium price is again equal to minimum average total cost.

3-decrease in the long run, resulting in a lower equilibrium price.

4-increase in the long run, resulting in a higher equilibrium price.

Reference no: EM13837725

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