(g) Now assume that the market in which Dave's General Store operates is in long-run equilibrium. (i) Suppose the rent paid by Dave's General Store decreases. Will Dave's General Store's profit- maximizing quantity of Good X increase, decrease, or stay the same in the short run? Explain. (ii) Instead suppose Dave's General Store hires labor in a perfectly competitive market and the market wage increases. Will Dave's General Store's profit-maximizing quantity of Good X increase, decrease, or stay the same in the short run? Explain.

The market for paperback detective novels is perfectly competitive. We have two types of consumers in the market- Regular and Occasional readers. Each Regular reader's demand curve is given by P=74-2Q. Each Occasional reader's demand curve is given by Q=94-6P Suppose there is only 1 reader of each type. What is market demand when market price is $59? Enter a number only. Remember, fractions of goods are possible.

This problem continues from the previous one. On the graph the supply in the Rest of the World has shifted from Sstart to S2 and the market in the Rest of the World has moved to a new short run equilibrium at B. The price of Good A is P1 in the U.S. and P2 in the Rest of the World. Which answer choices are correct from the image bellow?

The market for paperback detective novels is perfectly competitive. Suppose we have identical book readers, and each individual book reader's demand for paperback novels is given by P=130-7Q. We have 160 book readers in the market. What is the market quantity demanded when the price of a paperback novel is $21. Enter a number only. Remember, fractions of goods are possible.

2

Farmer Johnson producers Eggs in a perfectly competitive egg market. The short run cost curves are displayed below. $4.00 MC $3.50 ATC AVC $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0 20 40 60 80 100 120 140 160 Dozens of Eggs Price of Eggs

Suppose cowboy boots and leather vests are complements. If the price of cowboy boots increases significantly, what should we expect to happen to the supply curve for leather vests in the short run? We expect the supply curve to shift right. We shouldn't expect anything in particular to happen to the supply curve. We expect the supply curve to shift left.