7. 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 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 gallon) 10 2 4 In the short run, firms will Short-run Supply Demand 8 QUANTITY (Thousands of gallons) 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 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.

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Chapter1: Making Economics Decisions
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7. 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 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 gallon)
10
8
2
0
0
2
6
In the short run, firms will
Short-run Supply
Demand
QUANTITY (Thousands of gallons)
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 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:7. 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 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 gallon) 10 8 2 0 0 2 6 In the short run, firms will Short-run Supply Demand QUANTITY (Thousands of gallons) 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 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.
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