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Assume a perfectly competitive market for message therapists. Assume that in 2021, due to new health and safety regulations, there is a permanent increase in
Assume a perfectly competitive market for message therapists. Assume that in 2021, due to new health and safety regulations, there is a permanent increase in the marginal cost of therapeutic message. Based on this information and what we know about long-run vs. short-run elasticities, how will the short-run changes in price and quantity compare with the long-run changes in price and quantity. O Long-run increase in price will be larger than short-run increase in price. Long-run decrease in quantity will be larger than short-run decrease in quantity. O Long-run increase in price will be larger than short-run increase in price. Long-run decrease in quantity will be smaller than short-run decrease in quantity. O Long-run increase in price will be smaller than short-run increase in price. Long-run decrease in quantity will be larger than short-run decrease in quantity. O Long-run increase in price will be smaller than short-run increase in price. Long-run decrease in quantity will be smaller than short-run decrease in quantity
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