10. Suppose a market for cheap sunglasses is in a long-run competitive equilibrium and that the price...
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10. Suppose a market for cheap sunglasses is in a long-run competitive equilibrium and that the price is $10. Every producer of sunglasses sells 5,000 pairs. A cloudy summer decreases the demand for sunglasses, which causes the market price to change. As a consequence, in the short run, will each firm sell more sunglasses, fewer sunglasses, or the same number of sunglasses? Also, describe what will happen in the long run.
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