Question: Question 2: Short Run and Long Run Equilibrium - Entry and Exit Coupa GSB (right by Cemex) competes in the market for Coupa Coffee on

Question 2: Short Run and Long Run Equilibrium - Entry and Exit Coupa GSB (right by Cemex) competes in the market for Coupa Coffee on campus (which is completely distinct from the market for Coho,

Starbucks, and dining hall coffee), competing with Coupa Green Library, Coupa Y2E2,

Coupa Huang, and Coupa Stanford Golf Course. Assume for the purposes of

Question 2: Short Run and Long Run Equilibrium - Entry and Exit Coupa GSB (right by Cemex) competes in the market for Coupa Coffee on campus (which is completely distinct from the market for Coho, Starbucks, and dining hall coffee), competing with Coupa Green Library, Coupa Y2E2, Coupa Huang, and Coupa Stanford Golf Course. Assume for the purposes of this question that each location is a separate franchise with the power to set its own price, and the market for Coupa Coffee is perfectly competitive. a. Suppose the market for Coupa Coffee starts in long-run equilibrium. Please depict this equilibrium by drawing two diagrams side by side, one for the Coupa GSB and one for the market. Please label all axes, curves, and intersections.Suddenly, Stanford CS students realize they can code much faster with the aid of a ca'einated beverage. As a result, demand for Coupa Coffee increases permanently. Please show the short-run effect of this change on your diagrams from part (a). In the short run, what would happen to the Coupa GSB's prots? (1. Please explain and show graphically what happens to the Coupa Coffee market in the long run. In addition, discuss what will happen to Coupa GSB's production and prots as the industry adjusts in the long run

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