If the demand curve in a constant cost market shifts down and to the left, then:
A)the long run price and quantity decrease.
B)the long run price stays the same and the long run quantity decreases.
C)the long run price decreases and the long run quantity stays the same.
D)the long run price and quantity increase.

Question

Quizplus · Accepted Answer

In a constant cost market, the long run supply curve is perfectly elastic (horizontal). A leftward shift in the demand curve decreases the equilibrium quantity, but the price remains unchanged because the supply curve is horizontal.

If the Demand Curve in a Constant Cost Market Shifts