Please help, fill in the blank questions and 3 graph questions The long-run supply curve in different cost industries
The following graph shows the market for tortilla chip. 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.
?
10
51
52
8
Demand
PRICE (Dollars per bag)
Demand
Short-run Supply
Short-run Equilibrium
2
Long-run Equilibrium
0
0
2
4
6
QUANTITY (Thousands of bags)
8
10
Long-run Supply
shift leftward
remain unchanged
suffer economic losses
In the long run, the supply curve will
shift rightward
earn economic profits
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.
a high-cost industry
an increasing-cost industry
Comparing the two long-run equilibria on the graph, you can see that the tortilla chip market is an example of a decreasing-cost industry