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Assume that bee-keeping, for organic honey, operates in a competitive market structure, and that organic honey is considered a health-food. In recent times, healthy eating
Assume that bee-keeping, for organic honey, operates in a competitive market structure, and that organic honey is considered a health-food. In recent times, healthy eating became increasingly popular due to disease concerns, and the demand for organic honey increased significantly. a) Draw fully labelled diagrams to illustrate the short-run changes due to increased demand for organic honey in the market for organic honey, and the individual representative firm selling organic honey Hint: Start with the long-run equilibrium (4 marks)
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