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.### Graph Explanation- **X-axis:** Represents the quantity of orange juice in thousands of quarts.- **Y-axis:** Represents the price in dollars per quart.The graph displays two intersecting lines:- **Demand curve:** Slopes downward from left to right.- **Short-run Supply curve:** Slopes upward from left to right.### Legend- **Demand:** Represented by a line with a circle symbol.- **Short-run Supply:** Represented by a line with a square symbol.- **Short-run Equilibrium:** Indicated by a star symbol.- **Long-run Equilibrium:** Indicated by a diamond symbol.- **Long-run Supply:** Represented by a line with a triangle symbol.To adjust for the rightward shift in demand, click and drag the demand curve to the right, then indicate the new short-run equilibrium by positioning the star symbol accordingly. The concept illustrates how changes in taste affect demand and market equilibrium in the short run. In the short run, firms will _______. 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 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.

A perfectly competitive firm can adjust in the long run to changes in market demand for the…

In the short run, firms will 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 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.

In the short run, firms will 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 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.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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