PRICE (Cents per bushel) 20 10 COST (Cents per bushel) 100 90 8 8 70 50 ATC 40 30 20 10 AVC 0 5 10 15 20 25 30 35 40 45 50 OUTPUT (Thousands of bushels) The following graph shows the market demand for wheat. MC 1. Use the orange points (square symbol) to plot the short-run industry supply curve for the wheat industry. Specifically, place an orange point at the lowest point of the supply curve and another orange point at the highest point of the supply curve. (Hint: You can disregard the portion of the supply curve that corresponds to prices where there is no output, since this is the industry supply curve. Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.) 2. Place the black point (plus symbol) on the graph to indicate the short-run equilibrium price and quantity in this market. (Note: Dashed drop lines will automatically extend to both axes.) 100 Demand 90 80 70 60 0 0 350 700 1050 1400 1750 2100 2450 2800 3150 3500 QUANTITY (Thousands of bushels) Supply Curve + Equilibrium ? At the current short-run market price, firms will given the current market price. in the short run. In the long run, the market

PRICE (Cents per bushel) 20 10 COST (Cents per bushel) 100 90 8 8 70 50 ATC 40 30 20 10 AVC 0 5 10 15 20 25 30 35 40 45 50 OUTPUT (Thousands of bushels) The following graph shows the market demand for wheat. MC 1. Use the orange points (square symbol) to plot the short-run industry supply curve for the wheat industry. Specifically, place an orange point at the lowest point of the supply curve and another orange point at the highest point of the supply curve. (Hint: You can disregard the portion of the supply curve that corresponds to prices where there is no output, since this is the industry supply curve. Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.) 2. Place the black point (plus symbol) on the graph to indicate the short-run equilibrium price and quantity in this market. (Note: Dashed drop lines will automatically extend to both axes.) 100 Demand 90 80 70 60 0 0 350 700 1050 1400 1750 2100 2450 2800 3150 3500 QUANTITY (Thousands of bushels) Supply Curve + Equilibrium ? At the current short-run market price, firms will given the current market price. in the short run. In the long run, the market

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Firms In Competitive Markets

Section: Chapter Questions

Problem 10PA

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