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Question is attached below. Thank you so much for helping me! [15 points) Comparative Statics Consider the short-run equilibrium of a perfectly competitive market. Assume

Question is attached below. Thank you so much for helping me!

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[15 points) Comparative Statics Consider the short-run equilibrium of a perfectly competitive market. Assume that the slope of the inverse market demand function is strictly decreasing and the slope of the inverse market supply function is strictly positive. What is the effect on the equilibrium price and quantity when new rms enter the market? You can safely assume that the entry of rms increase the market supply. (For full credit you need to provide a formal proof )

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