23. Suppose the market for gourmet chocolate is in long-run equilibrium, and an economic downturn has reduced consumer discretionary incomes. Assume chocolate is a normal good, and the chocolate producers have identical cost structures.What will happen to demand—shift right, shift left, no shift?What will happen to profits for chocolate producers in the short run—increase, decrease, or no change?What will happen to the short-run supply curve—increase, decrease, or no change?What will happen to the long-run supply curve—increase, decrease, or no change?

Answered: Suppose the market for gourmet…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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23. Suppose the market for gourmet chocolate is in long-run equilibrium, and an economic downturn has reduced consumer discretionary incomes. Assume chocolate is a normal good, and the chocolate producers have identical cost structures.

What will happen to demand—shift right, shift left, no shift?
What will happen to profits for chocolate producers in the short run—increase, decrease, or no change?
What will happen to the short-run supply curve—increase, decrease, or no change?
What will happen to the long-run supply curve—increase, decrease, or no change?

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The demand is an economic idea that connects with a customer's longing to buy labor and products and readiness to follow through on a particular cost for them. An expansion in the cost of a decent or administration will in general diminish the amount demanded.

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