7. The long-run supply curve indifferent cost industries The following graph shows the market for breakfast bar. Initially, the market is in a long-run equilibrium. Suppose that a change in tastes resulted in a rightward shift in demand. On the following graph, shift the demand or supply curve to reflect this change in tastes. Then use the grey point (star symbol) to indicate the new short-run equilibrium. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. PRICE (Dollars per box) 10 8 2 0 0 2 4 In the short run, firms will 6 Short-run Supply Demand QUANTITY (Thousands of boxes) 8 10 Demand Short-run Supply Short-run Equilibrium Long-run Equilibrium Long-run Supply (?) In the short run, the supply curve will On the previous graph, show the shift in the supply curve and then use the purple point (diamond symbol) to indicate the resulting new long- run equilibrium. Comparing the two long-run equilibria on the graph, you can see that the breakfast bar market is an example of

7. The long-run supply curve indifferent cost industries The following graph shows the market for breakfast bar. Initially, the market is in a long-run equilibrium. Suppose that a change in tastes resulted in a rightward shift in demand. On the following graph, shift the demand or supply curve to reflect this change in tastes. Then use the grey point (star symbol) to indicate the new short-run equilibrium. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. PRICE (Dollars per box) 10 8 2 0 0 2 4 In the short run, firms will 6 Short-run Supply Demand QUANTITY (Thousands of boxes) 8 10 Demand Short-run Supply Short-run Equilibrium Long-run Equilibrium Long-run Supply (?) In the short run, the supply curve will On the previous graph, show the shift in the supply curve and then use the purple point (diamond symbol) to indicate the resulting new long- run equilibrium. Comparing the two long-run equilibria on the graph, you can see that the breakfast bar market is an example of

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter11: Profit Maximization

Section: Chapter Questions

Problem 11.11P

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Graph the long-run supply curve for this market, with specific numbers on the axes as relevant
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