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. In the long run, firms will ________ the market and the market ________ will ________.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, when demand increases, prices rise, attracting new firms to enter the market. This increases the market supply until a new long-run equilibrium is reached.

The Market for Maple Syrup Is Perfectly Competitive