Question 9Consider the file Short Run & Long Run and ignore everything that happened in the previous two questions. Start from the beginning. Assume that this is a constant-cost industry. Suppose that the demand for this product increases by 1,200 units and stays at this new higher level for ever. Then, in the short run, the equilibrium price of the product will equal “?” dollars per unit, the equilibrium quantity “?” units, and there will be “?”firms in the industry each making an economic profit of “?” dollars.Then, in the long run, the equilibrium price of the product will equal “?” dollars per unit, the equilibrium quantity “?” units, and there will be “?” firms in the industry each making an economic profit of “?” dollars. Question 10Consider the file Short Run & Long Run and ignore everything that happened in the previous two questions. Start from the beginning. Assume that this is an increasing-cost industry. Suppose that the demand for this product increases by 1,200 units and stays at this higher level for ever. In the long run, as new firms enter the industry, the demand for factors of production increases causing increases in wages and other input costs. This, in turn, causes the average cost of production to increase by 8 dollars (The ATC curve shifts up vertically by $8). Then, in the long run, the equilibrium price of the product will equal “?” dollars per unit, the equilibrium quantity “?” units, and there will be “?” firms in the industry each making an economic profit of “?” dollars.Question 11Consider the file Short Run & Long Run and ignore everything that happened in the previous two questions. Start from the beginning. Assume that this is a decreasing-cost industry. Suppose that the demand for this product increases by 1,200 units and stays at this higher level for ever. In the long run, as new firms enter the industry, some technological progress takes place and as a result the average cost of production decrease by 8 dollars (The ATC curve shifts down vertically by $8). Then, in the long run, the equilibrium price of the product will equal “?” dollars per unit, the equilibrium quantity “?” units, and there will be “?” firms in the industry each making an economic profit of “?” dollars. Question 12Consider the file Short Run & Long Run and ignore everything that happened in the previous questions. Start from the beginning. Assume that this is a constant-cost industry. Suppose that the demand for this product decreases by 1,200 units and stays at this new lower level for ever. Then, in the short run, the equilibrium price of the product will equal “?” dollars per unit, the equilibrium quantity “?” units, and there will be “?” firms in the industry each making an economic profit of “?” dollars.Then, in the long run, the equilibrium price of the product will equal “?” dollars per unit, the equilibrium quantity “?” units, and there will be “?” firms in the industry each making an economic profit of “?” dollars. $72$68$64$60$56$52$48$44$40$36$32$28$24$20$16$12$8$4$01,5001,8:002,1002,4002,7003,0003,3:003,6003,9:004,2004,500Market Supply and Demand FunctionsCost Functions for a Typical Firm in the Industry$72$68$64$60$56$52$48$44$40$36$32$28$24$20$16$12$8$4$002468101214161820

Question

Question 9Consider the file Short Run & Long Run and ignore everything that happened in the previous two questions. Start from the beginning.  Assume that this is a constant-cost industry. Suppose that the demand for this product increases by 1,200 units and stays at this new higher level for ever. Then, in the short run, the equilibrium price of the product will equal “?” dollars per unit, the equilibrium quantity “?” units, and there will be  “?”firms in the industry each making an economic profit of “?” dollars.Then, in the long run, the equilibrium price of the product will equal “?” dollars per unit, the equilibrium quantity “?” units, and there will be “?” firms in the industry each making an economic profit of “?” dollars. Question 10Consider the file Short Run & Long Run and ignore everything that happened in the previous two questions. Start from the beginning. Assume that this is an increasing-cost industry. Suppose that the demand for this product increases by 1,200 units and stays at this higher level for ever. In the long run, as new firms enter the industry, the demand for factors of production increases causing increases in wages and other input costs. This, in turn, causes the average cost of production to increase by 8 dollars (The ATC curve shifts up vertically by $8). Then, in the long run, the equilibrium price of the product will equal “?” dollars per unit, the equilibrium quantity “?” units, and there will be  “?” firms in the industry each making an economic profit of “?” dollars.Question 11Consider the file Short Run & Long Run and ignore everything that happened in the previous two questions. Start from the beginning. Assume that this is a decreasing-cost industry. Suppose that the demand for this product increases by 1,200 units and stays at this higher level for ever. In the long run, as new firms enter the industry, some technological progress takes place and as a result the average cost of production decrease by 8 dollars (The ATC curve shifts down vertically by $8). Then, in the long run, the equilibrium price of the product will equal “?” dollars per unit, the equilibrium quantity “?” units, and there will be “?” firms in the industry each making an economic profit of  “?” dollars. Question 12Consider the file Short Run & Long Run and ignore everything that happened in the previous questions. Start from the beginning.  Assume that this is a constant-cost industry. Suppose that the demand for this product decreases by 1,200 units and stays at this new lower level for ever. Then, in the short run, the equilibrium price of the product will equal “?”  dollars per unit, the equilibrium quantity “?” units, and there will be “?” firms in the industry each making an economic profit of “?” dollars.Then, in the long run, the equilibrium price of the product will equal “?” dollars per unit, the equilibrium quantity “?” units, and there will be “?” firms in the industry each making an economic profit of “?” dollars. $72$68$64$60$56$52$48$44$40$36$32$28$24$20$16$12$8$4$01,5001,8:002,1002,4002,7003,0003,3:003,6003,9:004,2004,500Market Supply and Demand FunctionsCost Functions for a Typical Firm in the Industry$72$68$64$60$56$52$48$44$40$36$32$28$24$20$16$12$8$4$002468101214161820

Accepted Answer

Detailed explanation:The above answers assume the given information and make reasonable inferences…