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Quantity The industry in Figure Q5 consists of many firms with identical cost structures, and the industry experiences constant returns to scale. Consider a change
Quantity The industry in Figure Q5 consists of many firms with identical cost structures, and the industry experiences constant returns to scale. Consider a change in demand from D1 to D2, which increases price from P1 to P2 in the short run. a. Draw the new short-run supply curve that will occur in response to the increase in demand and increase in price. b. Draw the long-run supply curve
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