The following graph shows the market for annual tortilla chip consumption, which is initially in long-run equilibrium at point D. After the change in tastes and the rightward shift in demand, the market moves to point in the short run and then to point in the long run. On the following graph, use the purple line (diamond symbol) to plot the long-run market supply curve for tortilla chips, making sure that it goes through two of the points A, B, C, or D.
The following graph shows the market for annual tortilla chip consumption, which is initially in long-run equilibrium at point D. After the change in tastes and the rightward shift in demand, the market moves to point in the short run and then to point in the long run. On the following graph, use the purple line (diamond symbol) to plot the long-run market supply curve for tortilla chips, making sure that it goes through two of the points A, B, C, or D.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![The following graph shows the market for annual tortilla chip consumption, which is initially in long-run equilibrium at point D. After the change in
tastes and the rightward shift in demand, the market moves to point in the short run and then to point in the long run.
On the following graph, use the purple line (diamond symbol) to plot the long-run market supply curve for tortilla chips, making sure that it goes
through two of the points A, B, C, or D.
PRICE (Dollars per bag
10
9
8
2
1
D
0
1
True
B
D₁
O False
23
C
S
10²4
NO
2 3
4
5
7
8
QUANTITY (Milions of bags per year)
According to the graph, the tortilla chip market is an example of
10
Long-Run Supply
True or False: The average cost at the cost-minimizing level of output is lower for the new marginal firm than it was for the marginal firm before the
change in demand.
industry.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcaea6fc4-c95c-4670-8998-c08a0cd82fb8%2Fd53f52d4-9745-4342-8427-f46ed593219e%2Fgik2ap_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The following graph shows the market for annual tortilla chip consumption, which is initially in long-run equilibrium at point D. After the change in
tastes and the rightward shift in demand, the market moves to point in the short run and then to point in the long run.
On the following graph, use the purple line (diamond symbol) to plot the long-run market supply curve for tortilla chips, making sure that it goes
through two of the points A, B, C, or D.
PRICE (Dollars per bag
10
9
8
2
1
D
0
1
True
B
D₁
O False
23
C
S
10²4
NO
2 3
4
5
7
8
QUANTITY (Milions of bags per year)
According to the graph, the tortilla chip market is an example of
10
Long-Run Supply
True or False: The average cost at the cost-minimizing level of output is lower for the new marginal firm than it was for the marginal firm before the
change in demand.
industry.
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