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Draw three separate supply curves for banana representing

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A. This question is related to supply adjustments to an increase in demand in a market selling banana.

i. Draw three separate supply curves for banana representing immediate market period, short-run and long-run. Explain why the shape of these curves are not the same at different time horizons.

ii. Suppose that there is an increase in demand for banana. Explain the impact of this on equilibrium price and equilibrium quantity in each of the time horizons. In which market period does an increase in demand impose greatest impact on price? Graphical illustration is required.

Reference no: EM132428639

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