An arugula store in a perfectly competitive market was in a long-run equilibrium. Then, the government announces that arugula prevents heart attacks, resulting in an increase in demand for arugula. Describe the market processes that affect the store in both the short run and the new long-run equilibrium

Microeconomics
13th Edition
ISBN:9781337617406
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter9: Perfect Competition
Section9.3: Perfect Competition In The Long Run
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An arugula store in a perfectly competitive market was in a long-run equilibrium. Then, the government announces that arugula prevents heart attacks, resulting in an increase in demand for arugula. Describe the market processes that affect the store in both the short run and the new long-run equilibrium.

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