The figure below shows the industry demand curve and two possible industry supplycurves in the perfectly competitive market for cheeseburgers.Price ($)876513210356BS₂AS₁Select one:● a. an excess supply of 6 cheeseburgers.b.an excess demand of 4 cheeseburgers.O c. an excess supply of 3 cheeseburgers.d. an excess demand of 6 cheeseburgers.7 8CheeseburgersThe market depicted in the figure above is initially at equilibrium at Point A. Suppose firmsbegin to exit the market, causing the supply curve to shift from S₁ to S₂.9 10 11 12QIf the price of cheeseburgers remains constant at $5.00, as a result of the decrease insupply there will be

Excess demand is when the quantity demanded is greater than the quantity supplied. Excess supply is…

The figure below shows the industry demand curve and two possible industry supply curves in the perfectly competitive market for cheeseburgers. 8 S₂ Price ($) 7 6 12 4 3 2 1 3 4 5 6 B 7 8 9 10 $₁ Select one: ● a. an excess supply of 6 cheeseburgers. * b. an excess demand of 4 cheeseburgers. C. an excess supply of 3 cheeseburgers. O d. an excess demand of 6 cheeseburgers. 11 12 Q Cheeseburgers The market depicted in the figure above is initially at equilibrium at Point A. Suppose firm begin to exit the market, causing the supply curve to shift from S₁ to S₂. If the price of cheeseburgers remains constant at $5.00, as a result of the decrease in supply there will be

The figure below shows the industry demand curve and two possible industry supply curves in the perfectly competitive market for cheeseburgers. 8 S₂ Price ($) 7 6 12 4 3 2 1 3 4 5 6 B 7 8 9 10 $₁ Select one: ● a. an excess supply of 6 cheeseburgers. * b. an excess demand of 4 cheeseburgers. C. an excess supply of 3 cheeseburgers. O d. an excess demand of 6 cheeseburgers. 11 12 Q Cheeseburgers The market depicted in the figure above is initially at equilibrium at Point A. Suppose firm begin to exit the market, causing the supply curve to shift from S₁ to S₂. If the price of cheeseburgers remains constant at $5.00, as a result of the decrease in supply there will be

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 1SCQ: Firms ill a perfectly competitive market are said to be price takers that is, once the market...

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Suppose the market for fresh pork is a competitive market. Initially, it is operatingat its long-run competitive equilibrium at a market price of $50.Owing to the spread of COVID-19, many people turn to buying frozen meat oncea week rather than fresh pork every day. As a result, the market price of fresh porkreduces to $30.a. With the aid of a pair of market-and-firm diagrams, illustrate how thiswould affect the equilibrium price and quantity in the fresh pork market andthe output of a typical butcher of fresh pork in the short-run.b. Suppose, for the situation in (a), the average cost of a typical butcher offresh pork is $40, which includes $15 on buying meat from suppliers, $12on paying rent, $8 on paying hourly wages on staff, and $5 on other costs.Explain whether a typical butcher should shut down in the short run.