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The question follows: The market for pizzas characterized by complete competition and is a constant cost industry The short term demand and supply can be
The question follows:
The market for pizzas characterized by complete competition and is a constant cost industry
The short term demand and supply can be described by the following functions
P= 500 - 0.05Qd
P= 60 + 0.025Qs (short term)
Short term: P: 206.67 , Q: 5866,67
Long term: P: 210, Q: 5800
(The long term numbers are not included in the actual question but I know the answer but not how to come to that conclusion)
How do I get the long term price equilibrium and quantity equilibrium? Illustrate in a graph.
Please explain the solution.
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