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Using a Supply and Demand and a Typical Firm Diagram

Question 22

Essay

Using a supply and demand and a typical firm diagram, illustrate the impact of a flood on the market for contractors once the flood has receded. NOTE: Assume the market was perfectly competitive and in a long-run equilibrium position before the flood. Also assume that construction is a constant-cost industry.

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The diagrams: blured image Initially the market is i...

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