Industry X,which is perfectly competitive,is in long-run equilibrium.Assume a new law is passed that requires employers in industry X to provide health insurance to previously uninsured employees.As a result of this new requirement we would expect to observe:

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The requirement of providing health insurance to previously uninsured employees will increase the cost of production for employers in industry X. As a result, the supply of goods in the market will decrease, leading to a decrease in total output. However, the demand for the product in the market will remain the same, leading to an increase in price. Therefore, we can expect an increase in price and a decrease in total output in industry X.

Industry X,which Is Perfectly Competitive,is in Long-Run Equilibrium