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Explain clearly Suppose that the widget industry is a perfectly competitive, decreasing cost industry and the initial market equilibrium price and quantity are Po and

Explain clearly

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Suppose that the widget industry is a perfectly competitive, decreasing cost industry and the initial market equilibrium price and quantity are Po and Qo. Suppose that the demand for widgets increases. If the new SR equilibrium price and quantity are Pse and Qs and the new LR equilibrium price and quantity are PIR and QLR, then O PSR > PIR > Po and Qo Po > PLR and QQ Po > PLR and QQ = QLR PLR > PSR and Qo > QSR > QLR- O Po = PLR PSR = PLR and QQ > QSR - QLR

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