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