e following graph shows the market for orange juice. Initially, the market is in a long-run uilibrium. ppose that a change in tastes resulted in a leftward shift in demand. the following graph, shift the demand or supply curve to reflect this change in tastes. Then use e grey point (star symbol) to indicate the new short-run equilibrium. ote: Select and drag one or both of the curves to the desired position. Curves will snap into osition, so if you try to move a curve and it snaps back to its original position, just drag it a little rther. PRICE (Dollars per quart) 10 2 Short-run Supply 2 4 QUANTITY (Thousands of quarts) Demand 10 1 Demand 0 Short-nun Supply Short-run Equilibrium ◆ Long-run Equilibrium A Long-run Supply ?
e following graph shows the market for orange juice. Initially, the market is in a long-run uilibrium. ppose that a change in tastes resulted in a leftward shift in demand. the following graph, shift the demand or supply curve to reflect this change in tastes. Then use e grey point (star symbol) to indicate the new short-run equilibrium. ote: Select and drag one or both of the curves to the desired position. Curves will snap into osition, so if you try to move a curve and it snaps back to its original position, just drag it a little rther. PRICE (Dollars per quart) 10 2 Short-run Supply 2 4 QUANTITY (Thousands of quarts) Demand 10 1 Demand 0 Short-nun Supply Short-run Equilibrium ◆ Long-run Equilibrium A Long-run Supply ?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Confused on how to solve the graph and the blanks
First blank:
suffer economic losses or earn economic profits
Second blank:
Shift leftward or remain unchanged or shift rightward
Third blank:
A high-cost industry
An increasing-cost industry
A low-cost industry
Or a decreasing-cost industry
Transcribed Image Text: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 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.
PRICE (Dollars per quart)
10
Short-run Supply
2
QUANTITY (Thousands of quarts)
In the short run, firms will
Demand
B
10
Demand
-
Short-nun Supply
Short-run Equilibrium
◆
Long-run Equilibrium
Long-run Supply
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 orange juice market is
an example of
On the previous graph, use the green line (diamond symbols) to plot the long-run market supply
curve for orange juice.
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