The new long-run equilibrium will result in a(n) rev : increase in output and in the equilibrium price of the product.
Explanation:
Higher prices mean that the quantity needed for good increases as income decreases and vice versa. Thus the quantity required good raises in the given question as income falls as a result of the recession. It pushes up the demand curve, leading to an increase in the supply yield and a price increase in value.
Modern supply and demand changes affect both price and quantity. If the supply curve goes up, which lowers supply, but leaves demand stable, the price of exchange is increasing, but volume decreases.
For Example, pump prices are likely to rise, if the supply of petrol falls.
