The market for maple syrup is perfectly competitive. Suppose that the market is in long- run equilibrium when the market demand for maple syrup increases. After the demand increases, a typical firm will

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Quizplus · Accepted Answer

DIn a perfectly competitive market, an increase in demand initially leads to higher prices and economic profits for firms. Over time, these profits attract new firms into the market, increasing supply until prices fall back to the level where firms make zero economic profit, restoring long-run equilibrium.

The Market for Maple Syrup Is Perfectly Competitive