Assume that the market for cage-free eggs is perfectly competitive.All else equal, as farmers find it less profitable to produce and sell cage-free eggs in this market

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If farmers find it less profitable to produce and sell cage-free eggs, they will likely decrease their production or exit the market, causing the supply curve to shift to the left. This decrease in supply will result in a higher equilibrium price as buyers compete for the limited quantity of cage-free eggs available. The demand curve is not affected by changes in the profitability of producing cage-free eggs.

Assume That the Market for Cage-Free Eggs Is Perfectly Competitive