Use the following diagrams to answer a and b. a. Show the effect of an increase in

Question:

Use the following diagrams to answer a and b.

a. Show the effect of an increase in demand on the perfectly competitive firm€™s price, marginal revenue, output, and profits in the short run.
b. Show the long-run effects of an increase in demand for the industry, and the effects on a perfectly competitive firm€™s price, marginal revenue, output, and profits for a constant-costindustry.