1.500 $72 $68 $64 $60 $56 $52 $48 $44 $40 $36 $32 $28 $24 $20 $16 $12 $8 $4 $0 1,800 2,100 2,400 2,700 3.000 3.300 3.600 3,900 Market Supply and Demand Functions $72 $68 $64 $60 $56 $52 $48 $44 $40 Cost Functions for a Typical Firm in the Industry XY $36 $32 $28 $24 $20 $16 $12 4,200 4,500 $4 $0 0 2 4 6 8 10 12 14 16 18 20 Consider 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 there will be dollars per unit, the equilibrium quantity units, and 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.
1.500 $72 $68 $64 $60 $56 $52 $48 $44 $40 $36 $32 $28 $24 $20 $16 $12 $8 $4 $0 1,800 2,100 2,400 2,700 3.000 3.300 3.600 3,900 Market Supply and Demand Functions $72 $68 $64 $60 $56 $52 $48 $44 $40 Cost Functions for a Typical Firm in the Industry XY $36 $32 $28 $24 $20 $16 $12 4,200 4,500 $4 $0 0 2 4 6 8 10 12 14 16 18 20 Consider 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 there will be dollars per unit, the equilibrium quantity units, and 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.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Transcribed Image Text:1.500
$72
$68
$64
$60
$56
$52
$48
$44
$40
$36
$32
$28
$24
$20
$16
$12
$8
$4
$0
1,800
2,100
2,400
2,700
3.000
3.300
3.600
3,900
Market Supply and Demand Functions
$72
$68
$64
$60
$56
$52
$48
$44
$40
Cost Functions for a Typical Firm in the Industry
XY
$36
$32
$28
$24
$20
$16
$12
4,200
4,500
$4
$0
0
2
4
6 8
10
12
14
16
18
20
Transcribed Image Text:Consider 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
there will be
dollars per unit, the equilibrium quantity
units, and
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.
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