The graph titled Soy Bean Market is a graph of the market for soy beans, a...
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The graph titled Soy Bean Market is a graph of the market for soy beans, a perfectly (purely) competitive market. The graph titled Roy's Soys depicts an individual firm in the market for soy beans. The market and the firm are currently in long-run equilibrium at Point A. Show what happens in the short run on both graphs when a new medical study shows soy beans to be an effective weight- loss supplement. On the market graph, shift a curve (or curves). On the firm's graph, use "Price 2" to draw a new price line for the firm. On both graphs, indicate the new equilibrium points with the points labeled B. Now, show the changes that get both graphs back to long-run equilibrium. Shift the appropriate curve(s) for the market and "Price 3" for the firm. Indicate the new long-run equilibrium with the points labeled C. Price ($) 29816SHMNIS 4 20 17 15 14 13 11 10 7 5 3 2 1 B ● Soy Bean Market A Short-run supply Long-run supply Demand 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Quantity (millions of bushels) Price ($) 2229BTSHMNIPOSTS & 21 20 19 18 17 16 15 14 13 12 11 10 8 7 6 5 4 3 2 1 0 ● B Roy's Soys Average total cost A n● Price 2 Price 3 Price Marginal cost 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Quantity (hundreds of bushels) The graph titled Soy Bean Market is a graph of the market for soy beans, a perfectly (purely) competitive market. The graph titled Roy's Soys depicts an individual firm in the market for soy beans. The market and the firm are currently in long-run equilibrium at Point A. Show what happens in the short run on both graphs when a new medical study shows soy beans to be an effective weight- loss supplement. On the market graph, shift a curve (or curves). On the firm's graph, use "Price 2" to draw a new price line for the firm. On both graphs, indicate the new equilibrium points with the points labeled B. Now, show the changes that get both graphs back to long-run equilibrium. Shift the appropriate curve(s) for the market and "Price 3" for the firm. Indicate the new long-run equilibrium with the points labeled C. Price ($) 29816SHMNIS 4 20 17 15 14 13 11 10 7 5 3 2 1 B ● Soy Bean Market A Short-run supply Long-run supply Demand 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Quantity (millions of bushels) Price ($) 2229BTSHMNIPOSTS & 21 20 19 18 17 16 15 14 13 12 11 10 8 7 6 5 4 3 2 1 0 ● B Roy's Soys Average total cost A n● Price 2 Price 3 Price Marginal cost 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Quantity (hundreds of bushels)
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The increase in demand for Soybeans shifts the demand curve to rightward D2 It interse... View the full answer
Related Book For
Probability and Statistics for Engineering and the Sciences
ISBN: 978-1305251809
9th edition
Authors: Jay L. Devore
Posted Date:
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