The industry in the figure below consists of many firms with identical cost structures, and the industry experiences constant returns to scale. Consider a change in demand from D₁ to D₂. which increases price from $20 to $30 in the short run. Price (S) 50 40- 30 10- 0 0 10 20 Market 30 B 00 Quantity reset o 50 D₂ 60 1 LRS S₂ Instructions: Round your answers to the nearest whole number. a. Draw the new supply line that occurs after the market adjustments take place. Instructions: Use the tool provided (S₂) and plot only the endpoints. The new equilibrium price will be $ [ b. Draw the long-run supply curve. Instructions: Use the tool provided (LRS) and plot only the endpoints over the entire range of output (0-60). and the new equilibrium quantity will be

The industry in the figure below consists of many firms with identical cost structures, and the industry experiences constant returns to scale. Consider a change in demand from D₁ to D₂. which increases price from $20 to $30 in the short run. Price (S) 50 40- 30 10- 0 0 10 20 Market 30 B 00 Quantity reset o 50 D₂ 60 1 LRS S₂ Instructions: Round your answers to the nearest whole number. a. Draw the new supply line that occurs after the market adjustments take place. Instructions: Use the tool provided (S₂) and plot only the endpoints. The new equilibrium price will be $ [ b. Draw the long-run supply curve. Instructions: Use the tool provided (LRS) and plot only the endpoints over the entire range of output (0-60). and the new equilibrium quantity will be

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter7: Perefect Competition

Section: Chapter Questions

Problem 1SQP

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