Assume that the egg industry is perfectly competitive and is in long-run equilibrium with a perfectly elastic

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Assume that the egg industry is perfectly competitive and is in long-run equilibrium with a perfectly elastic long-run industry supply curve. Health concerns about cholesterol then lead to a decrease in demand. Construct a figure similar to Figure 12-7, showing the short-run behavior of the industry and how long-run equilibrium is reestablished.

Figure 12-7:

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Microeconomics

ISBN: 9781319245283

6th Edition

Authors: Paul Krugman Robin Wells

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