Swords are provided by a competitive constant-cost industry, where the long run is 2 days. The industry is in long-run equilibrium on Monday. On Tuesday, the demand for swords rises. On Wednesday, the industry achieves its new long-run equilibrium.
a. On which day or days (Monday, Tuesday, or Wednesday) are swords most expensive? On which day or days are the least expensive?
b. On which day or days are the most swords bought? On which day or days are the fewest swords bought?
c. On which day or days does Sally's Sword shop (a typical firm) sell the most swords? On which day or days does it sell the fewest?
d. On which day or days are Sally's profits highest? On which day or days are they lowest?