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Again, assume that the N 9 5 mask market is perfectly competitive and remember that over time the market supply curve shifted to the right
Again, assume that the N mask market is perfectly competitive and remember that over time the market supply curve shifted to the right as new firms entered the market. Assuming that the N mask market was in long run equilibrium before the pandemic before the rightward shift of the demand curve what does economic theory tell us the equillbrium price of N masks will be in the long run?
Derrick
So firms will keep entering the market and the supply curve will keep shifting to the right until the market equilibrium price is:
$ in the long run.
$ in the long run.
greater than $ in the long run.
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