The long-run supply curve indifferent cost industries The following graph shows the market for milk. Initially, the market is in a long-run equilibrium. Suppose that a change in tastes resulted in a leftward 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. *INSERT PICTURE* In the short run, firms will___. In the long 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 milk market is an example of_____. On the previous graph, use the green line (diamond symbols) to plot the long-run market supply curve for milk.
The long-run supply curve indifferent cost industries The following graph shows the market for milk. Initially, the market is in a long-run equilibrium. Suppose that a change in tastes resulted in a leftward 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. *INSERT PICTURE* In the short run, firms will___. In the long 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 milk market is an example of_____. On the previous graph, use the green line (diamond symbols) to plot the long-run market supply curve for milk.
Chapter4: Demand, Supply, And Markets
Section: Chapter Questions
Problem 3.4P
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The long-run supply curve indifferent cost industries
The following graph shows the market for milk. Initially, the market is in a long-run equilibrium.
Suppose that a change in tastes resulted in a leftward 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.
*INSERT PICTURE*
In the short run, firms will___. In the long 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 milk market is an example of_____.
On the previous graph, use the green line (diamond symbols) to plot the long-run market supply curve for milk.
Transcribed Image Text:10
Short-run Supply
Demand
8
Short-run Supply
Short-run Equilibrium
Demand
Long-run Equilibrium
4
6.
10
Long-run Supply
QUANTITY (Thousands of gallons)
PRICE (Dollars per gallon)
2.
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