Market returns to the long-run equilibrium

Assignment Help Business Economics

Reference no: EM13839714

Assume that apples are an inferior good. Draw a perfectly competitive market for apples and a firm selling apples in the long run equilibrium where price is $10 and the firm’s equilibrium quantity is 50. Explain the following situations graphically and in words (Draw and label side-by-side graphs for each).

a. EXPLAIN what happens in the short-run if customer’s incomes increases?

b. EXPLAIN the process by which this market returns to the long-run equilibrium

Reference no: EM13839714

Questions Cloud

What data collection programs : What data collection programs would be best utilized on the ISIL organization?

Effective manager in a large organization and avoid politics : Politics relates to who gets what, when, and how. Politicking bridges at least three other topics in management and organizational behavior: decision making, leadership, and power. Individuals often perceive organizational political actions as pri..

Find the ph of the solution : the pH of the solution

How could you stop the conflict from escalating : How could you stop the conflict from escalating? Conflict can be positive/ constructive or negative. Explain what that means and how your actions can influence whether the conflict has positive or negative outcomes.

Market returns to the long-run equilibrium : Assume that apples are an inferior good. Draw a perfectly competitive market for apples and a firm selling apples in the long run equilibrium where price is $10 and the firm’s equilibrium quantity is 50. EXPLAIN what happens in the short-run if custo..

Dane a security interest in the car in exchange : Steve owns a car. He decides that he needs a loan in order to improve his house, so he goes to Liv. He agrees to give Liv a security interest in the car in exchange for $4,000. Two weeks later he decides that he needs more money. He goes to Dane. He ..

Portfolio diversification eliminates : Portfolio diversification eliminates which one of the following?

Classified as a variable cost arising from physical inputs : Marcella operates a small, but very successful art gallery. All but one of the following can be classified as a variable cost arising from the physical inputs Marcella required to operate her business. Which is it?

Efficiency of monopolistic and perfectly competitive markets : Compare the efficiency of monopolistic and perfectly competitive markets. Discuss the economic factors that lead to the development of monopolies. Examples of monopolies include electric utilities, railroads, airlines, cable television, and sports le..

User Account

All Pages