Homework (Ch 09) 1. The supply curve in the very short run The following graph shows the annual demand for tortilla chip consumption, which is initially in long-run equilibrium at point D. Suppose that tortilla chips are sold in a perfectly competitive market, and tastes shift away from tortilla chips so that demand shifts leftward from D₁ to D₂. Use the purple line (diamond symbol) to illustrate the supply curve in the very short run. Make sure the line passes through two of the starred points on the graph. PRICE (Dollars per bag) 10 9 8 10 3 2 1 0 0 1 C D 5 A B 10 6 7 8 2 3 4 QUANTITY (Millions of bags per year) 9 1 10 Short-Run Supply Curve ?

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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True or False: The very short run is also known as the market period.
True
False
Transcribed Image Text:True or False: The very short run is also known as the market period. True False
Homework (Ch 09)
1. The supply curve in the very short run
The following graph shows the annual demand for tortilla chip consumption, which is initially in long-run equilibrium at point D. Suppose that tortilla
chips are sold in a perfectly competitive market, and tastes shift away from tortilla chips so that demand shifts leftward from D₁ to D₂.
Use the purple line (diamond symbol) to illustrate the supply curve in the very short run. Make sure the line passes through two of the starred points
on the graph.
PRICE (Dollars per bag)
10
9
0
1
2
C
D
A
B
D₂
3
4
5
6
7
8
QUANTITY (Millions of bags per year)
9
D.
10
Short-Run Supply Curve
?
Transcribed Image Text:Homework (Ch 09) 1. The supply curve in the very short run The following graph shows the annual demand for tortilla chip consumption, which is initially in long-run equilibrium at point D. Suppose that tortilla chips are sold in a perfectly competitive market, and tastes shift away from tortilla chips so that demand shifts leftward from D₁ to D₂. Use the purple line (diamond symbol) to illustrate the supply curve in the very short run. Make sure the line passes through two of the starred points on the graph. PRICE (Dollars per bag) 10 9 0 1 2 C D A B D₂ 3 4 5 6 7 8 QUANTITY (Millions of bags per year) 9 D. 10 Short-Run Supply Curve ?
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