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Question 7. The picture below depicts how the market price of fruit varied over time in the Playconomics game.

Question 7.

The picture below depicts how the market price of fruit varied over time in the Playconomics game. The market originally had only a few suppliers, but now has hundreds of students participating as producers. Based on your understanding of the competitive market model of this course (especially the "Invisible Hand" and long run efficiency of perfectly competitive markets), explain why the price is most likely to have changed as it did over time.


Screen Shot 2018-05-07 at 5.48.17 pm.png

Screen Shot 2018-05-07 at 5.48.17 pm.png

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