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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. c) According to economic theory, in the long-run, perfectly competitive markets inevitably return to their break-even equilibrium. Explain how the organic honey market illustrated in part a. above will return to its long-run equilibrium. Hint: Apply the relevant economic theory. No graph needed
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