Suppose that a perfectly competitive, constant-cost, industry produces some type of inferior good. The industry is in long-run equilibrium when the economy goes into a recession and average incomes fall. Which of the following can be expected to
occur?
A. an increase in output and in the price of this industry's product
B. an increase in output but no change in the price of this industry's product
O C. an increase in output and a decrease in the price of this industry's product
O D. a decrease in output but no change in the price of this industry's product