7. The long-run supply curve in different cost industries The following graph shows the market for orange juice. 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 quart) 6 0 0 2 6 Short-run Supply Demand QUANTITY (Thousands of quarts) 8 O Demand 101 Short-run Supply 4 Short-run Equilibrium 9 Long-run Equilibrium A Long-run Supply

7. The long-run supply curve in different cost industries The following graph shows the market for orange juice. 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 quart) 6 0 0 2 6 Short-run Supply Demand QUANTITY (Thousands of quarts) 8 O Demand 101 Short-run Supply 4 Short-run Equilibrium 9 Long-run Equilibrium A Long-run Supply

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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