The agricultural market whose demand and supply schedules are is initially in long-run equilibrium. Quantity then falls to 50% of its previous level as a result of an unexpectedly poor harvest. How many time periods will it take for price to return to within 1% of its long-run equilibrium level?

The agricultural market whose demand and supply schedules are is initially in long-run equilibrium. Quantity then falls to 50% of its previous level as a result of an unexpectedly poor harvest. How many time periods will it take for price to return to within 1% of its long-run equilibrium level?

Survey of Economics (MindTap Course List)

9th Edition

ISBN:9781305260948

Author:Irvin B. Tucker

Publisher:Irvin B. Tucker

Chapter4: Markets In Action

Section: Chapter Questions

Problem 18SQ

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The agricultural market whose demand and supply schedules are

is initially in long-run equilibrium. Quantity then falls to 50% of its previous level as a result of an unexpectedly poor harvest. How many time periods will it take for price to return to within 1% of its long-run equilibrium level?

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