The following graph shows the market for orange juice. Initially, the market is in a long-run equilibrium.Suppose that a change in tastes resulted in a rightward 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 newshort-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 backto its original position, just drag it a little farther.10Short-run SupplyDemand8Short-run SupplyShort-run EquilibriumDemand2Long-run Equilibrium24810Long-run SupplyQUANTITY (Thousands of quarts)PRICE (Dollars per quart) In the short run, firms will. In the short run, the supply curve willOn 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 orange juice market is an example ofOn the previous graph, use the green line (diamond symbols) to plot the long-run market supply curve for orange juice.

A perfectly competitive firm can adjust in the long run to changes in market demand for the…

In the short run, firms will In the short 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 orange juice market is an example of On the previous graph, use the green line (diamond symbols) to plot the long-run market supply curve for orange juice.

In the short run, firms will In the short 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 orange juice market is an example of On the previous graph, use the green line (diamond symbols) to plot the long-run market supply curve for orange juice.

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter9: Price Takers And The Competitive Process

Section: Chapter Questions

Problem 11CQ

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