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Mathematics 18 Online
OpenStudy (anonymous):

Please try to help me with this problem. I don’t even know how to start. For each of the following events, how would equilibrium price will be affected (i) in the short run and (ii) in the long run? a) Demand for bicycles increases. Bicycles are produced by a perfectly competitive constant-cost industry. b) Demand for steel increases. Steel is produced by a perfectly competitive increasing-cost industry.

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