Suppose the equilibrium price and quantity of bicycles is determined at $40 and 200 units,respectively.For some reason,the market price of the bicycles initially increases to $60 and then decreases to $20.How will these deviations from the equilibrium price be corrected in a perfectly competitive market? Explain with the help of suitable diagrams.

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The Answer of Suppose the equilibrium price and quantity of bicycles is determined at $40 and 200 units,respectively.For some reason,the market price of the bicycles initially increases to $60 and then decreases to $20.How will these deviations from the equilibrium price be corrected in a perfectly competitive market? Explain with the help of suitable diagrams.

Suppose the Equilibrium Price and Quantity of Bicycles Is Determined