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The cherry market is competitive and is currently in a long - run equilibrium. Suppose that the U . S . Surgeon General announces that
The cherry market is competitive and is currently in a longrun equilibrium. Suppose that the US Surgeon General announces that new research has found cherries reduce the chances of having cancer by and the public believes this report. After this announcement, the cherry market responds and adjusts to its new longrun equilibrium.
It is found that the prices of inputs to all cherry producers increased over this adjustment process. This implies that the cherry market has a longrun supply curve that displays and its longrun supply curve is
external economies; downward sloping
external diseconomies; upward sloping
external diseconomies; downward sloping
external economies; upward sloping
constant costs; horizontal
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