Answer the following question and submit to the appropriate space on Canvas. Be careful to completely and correctly label all of the parts of any graph you draw. Please be a neat as possible. 1. The AIA Car Wash is a representative firm in a purely/perfectly competitive, constant-cost market. The market is currently in a long-run equilibrium. a. Use the blank axes below to draw completely and thoroughly labeled side-by-side graphs for the car wash market and for AIA Car Wash. Make sure that you clearly indicate the price and quantity of car washes in the market and price and quantity for AIA Car Wash. b. Car washes are a normal good. As the result of a remarkably healthy economy, a large number of consumers get raises (larger paychecks). Use the graphs you drew above to show how the increase in consumer income impacts the following items in the short run: d quantity

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In a perfectly competitive market, many small businesses compete by producing and selling comparable products or services. Features of a perfectly competitive market incorporate products that are homogenous across all businesses, a large number of purchasers and sellers with no single business having a significant market share, easy entry and exit for businesses with no restrictions, and complete and accurate knowledge available to all market participants regarding prices and quality.