The market for desiccated gadgets in Monteregian is perfectly competitive.

All gadget producers face costs (per week) described by

In the SHORT RUN (no existing firms exit the industry; no new firms enter the industry), the number of firms producing and selling gadgets is equal to the number determined in Question 6. The number of firms is fixed in SHORT RUN.

The demand for desiccated gadgets (per week) increases (gadets become MORE fashionable; there are increased numbers of potential buyers of gadgets). The new demand for desiccated gadgets is given by Q_D(P) = 600 - P

What is the SHORT RUN equilibrium price?

Question 7 options:

1)Eqbm P^(SR) 80

2)80 < Eqbm P^(SR) 100

3)100 < Eqbm P^(SR) 120

4)120 < Eqbm P^(SR) 140

5)140 < Eqbm P^(SR)