A perfectly competitive market for coffee beans is in a stable, long-run equilibrium. A new, widely-publicized health study reveals significant benefits of daily coffee consumption, causing a permanent increase in consumer demand. Assuming this is a constant-cost industry, how will the new long-run equilibrium compare to the original equilibrium before the study was published?
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A perfectly competitive market for coffee beans is in a stable, long-run equilibrium. A new, widely-publicized health study reveals significant benefits of daily coffee consumption, causing a permanent increase in consumer demand. Assuming this is a constant-cost industry, how will the new long-run equilibrium compare to the original equilibrium before the study was published?
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