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.