The following graph shows the market demand for wheat. PRICE (Cents per bushel) 1. Use the orange points (square symbol) to plot the short-run industry supply curve for the wheat industry. Specifically, place an orange point at the lowest point of the supply curve and another orange point at the highest point of the supply curve. (Hint: You can disregard the portion of the supply curve that corresponds to prices where there is no output, since this is the industry supply curve. Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.) 2. Place the black point (plus symbol) on the graph to indicate the short-run equilibrium price and quantity in this market. (Note: Dashed drop lines will automatically extend to both axes.) 1Demand 90 80 70 60 50 40 30 20 10 0 0 400 800 1200 1600 2000 2400 2800 3200 3600 4000 QUANTITY (Thousands of bushels) At the current short-run market price, firms will given the current market price. Supply Curve Equilibrium ? in the short run. In the long run, the market
The following graph shows the market demand for wheat. PRICE (Cents per bushel) 1. Use the orange points (square symbol) to plot the short-run industry supply curve for the wheat industry. Specifically, place an orange point at the lowest point of the supply curve and another orange point at the highest point of the supply curve. (Hint: You can disregard the portion of the supply curve that corresponds to prices where there is no output, since this is the industry supply curve. Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.) 2. Place the black point (plus symbol) on the graph to indicate the short-run equilibrium price and quantity in this market. (Note: Dashed drop lines will automatically extend to both axes.) 1Demand 90 80 70 60 50 40 30 20 10 0 0 400 800 1200 1600 2000 2400 2800 3200 3600 4000 QUANTITY (Thousands of bushels) At the current short-run market price, firms will given the current market price. Supply Curve Equilibrium ? in the short run. In the long run, the market
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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PLease show all steps clearly and please make the graph very clear so that i know in which numbers i have to draw the lines on so please write down each of the point in the line segments. Thank U!
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Transcribed Image Text:The following graph shows the market demand for wheat.
PRICE (Cents per bushel)
1. Use the orange points (square symbol) to plot the short-run industry supply curve for the wheat industry. Specifically, place an
orange point at the lowest point of the supply curve and another orange point at the highest point of the supply curve. (Hint: You
can disregard the portion of the supply curve that corresponds to prices where there is no output, since this is the industry supply
curve. Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.)
2. Place the black point (plus symbol) on the graph to indicate the short-run equilibrium price and quantity in this market. (Note:
Dashed drop lines will automatically extend to both axes.)
1Demand
90
80
70
60
50
40
30
20
10
0
0
400
800 1200 1600 2000 2400 2800 3200 3600 4000
QUANTITY (Thousands of bushels)
At the current short-run market price, firms will
given the current market price.
Supply Curve
+
Equilibrium
?
in the short run. In the long run,
the market
Transcribed Image Text:5. Short-run equilibrium
Consider a perfectly competitive market for wheat in San Diego. There are 80 firms in the industry, each of which has the cost curves shown on the
following graph:
COST (Cents per bushel)
100
90
80
70
60
50
40
30
20
10
0
0
5
ATC
AVC
10 15 20 25 30 35
OUTPUT (Thousands of bushels)
40
MC
45 50
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