If coffee suppliers are price takers, how will an unanticipated increase in demand for their product affect

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If coffee suppliers are price takers, how will an unanticipated increase in demand for their product affect each of the following, in a market that was initially in long-run equilibrium?

a. The short-run market price of the product

b. Industry output in the short run

c. Profitability in the short run

d. The long-run market price in the industry

e. Industry output in the long run

f. Profitability in the long run.

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Economics Private And Public Choice

ISBN: 9780357133996

17th Edition

Authors: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

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Question Posted: Oct 17, 2023 10:01 AM

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If coffee suppliers are price takers, how will an unanticipated increase in demand for their product affect

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When coffee suppliers operate in a perfectly competitive market as price takers and face an unanticipated increase in demand several effects can be ob...View the full answer

Economics Private And Public Choice

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