Consider again the pizza market in Vancouver. Assume the daily demand for pizza is Qd= 32,900
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Now suppose that demand doubles to Qd = 65,800 − 1200P. If in the short run the number of firms is fixed (so that neither entry nor exit is possible) and fixed costs are sunk, what is the new short-run market equilibrium? What is the new market equilibrium in the long run?
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