Please see the attached20 Graph A shows the market demand and supply in a perfectly competitive market. Graph B shows the cost curves of a representative profit-maximizingfirm in that industry.(A)$900$9008008002040100 120Quantity per periodQuantity per periodOn thousands)Refer to the above graph to answer this question. Suppose that the industry demand were to increase by 3,000 units. What will be the new equilibriumprice and quantity in the industry?Select one:O a. $800 and 7,000O b. $700 and 6,500O C. $500 and 8,000O d. $600 and 6,000O e. $400 and 8,000

Increase in demand, means the demand curve would shift right.

Graph A shows the market demand and supply in a perfectly competitive market. Graph B shows the cost curves of a representative profit-maximizing firm in that industry. (A) 100 120 Quantity per period 80 Quantity per period n thousands) Refer to the above graph to answer this question. Suppose that the industry demand were to increase by 3,000 units. What will be the new equilibrium price and quantity in the industry? Select one: O a. $800 and 7,000 O b. $700 and 6,500 O C. $500 and 8,000 O d. $600 and 6,000 O e. $400 and 8,000

Graph A shows the market demand and supply in a perfectly competitive market. Graph B shows the cost curves of a representative profit-maximizing firm in that industry. (A) 100 120 Quantity per period 80 Quantity per period n thousands) Refer to the above graph to answer this question. Suppose that the industry demand were to increase by 3,000 units. What will be the new equilibrium price and quantity in the industry? Select one: O a. $800 and 7,000 O b. $700 and 6,500 O C. $500 and 8,000 O d. $600 and 6,000 O e. $400 and 8,000

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Firms In Competitive Markets

Section: Chapter Questions

Problem 10PA

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