Explain impact on market for milk forces dairy to shut down

Reference no: EM13212975

Use graphs to model the following story. Each phase (letter) can be drawn on the same graph with subscripts to represent changes (ie. Price for the first phase should be pa, price in the second phase should be pb, etc): a. The market for milk is in equilibrium and Dr. Derry Del Ray's Daily Dairy is making economic profit. b. After years of lying in wait as a scout, Cookie Monster reveals himself as a member of a hostile alien invasion force. Due to their pillaging, the price of cookies skyrockets. The subsequent impact on the market for milk leaves the Dairy producing at a loss. c. One of earth's counter measures against the Cookie Monster army is to unleash a zombie virus. This infects the Dairy's cows, whose milk now carries the zombie plague. The subsequent impact on the market for milk forces the Dairy to shut down.

Reference no: EM13212975

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