shopping center nearby, you saw an organic grocery store that barely sells any goods in a day. You are pretty sure the business is not making any profits. 1) Why do the stores stay open? Explain briefly 2) If what happens in this organic grocery store is a common observation in the market, in the long run, what will happen to the supply of organic grocery and the price? Use a supply and demand diagram to show how that response will change the combined amount of consumer surplus and producer surplus in the market.

shopping center nearby, you saw an organic grocery store that barely sells any goods in a day. You are pretty sure the business is not making any profits. 1) Why do the stores stay open? Explain briefly 2) If what happens in this organic grocery store is a common observation in the market, in the long run, what will happen to the supply of organic grocery and the price? Use a supply and demand diagram to show how that response will change the combined amount of consumer surplus and producer surplus in the market.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter4: The Market Forces Of Supply And Demand

Section: Chapter Questions

Problem 1QR

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