The long-run supply curve indifferent cost industries The following graph shows the market for milk. Initially, the market is in a long-run equilibrium. Suppose that a change in tastes resulted in a leftward 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. *INSERT PICTURE* In the short run, firms will___. In the long 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 milk market is an example of_____. On the previous graph, use the green line (diamond symbols) to plot the long-run market supply curve for milk.
The long-run supply curve indifferent cost industries The following graph shows the market for milk. Initially, the market is in a long-run equilibrium. Suppose that a change in tastes resulted in a leftward 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. *INSERT PICTURE* In the short run, firms will___. In the long 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 milk market is an example of_____. On the previous graph, use the green line (diamond symbols) to plot the long-run market supply curve for milk.
Chapter4: Demand, Supply, And Markets
Section: Chapter Questions
Problem 3.4P
Related questions
Question
The long-run supply curve indifferent cost industries
The following graph shows the market for milk. Initially, the market is in a long-run equilibrium.
Suppose that a change in tastes resulted in a leftward 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.
*INSERT PICTURE*
In the short run, firms will___. In the long 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 milk market is an example of_____.
On the previous graph, use the green line (diamond symbols) to plot the long-run market supply curve for milk.
Transcribed Image Text:10
Short-run Supply
Demand
8
Short-run Supply
Short-run Equilibrium
Demand
Long-run Equilibrium
4
6.
10
Long-run Supply
QUANTITY (Thousands of gallons)
PRICE (Dollars per gallon)
2.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
Recommended textbooks for you
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours…
Economics
ISBN:
9781337091985
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Microeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506893
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning