Suppose that there is a decrease in the number of firms in the market. 1.) Using the line drawing tool, show the effect on the market. Properly label your new curve. 2) Using the point drawing tool, show the new equilibrium price and quantity. Label your point 'E".

MACROECONOMICS
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Author:Baumol
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Chapter4: Supply And Demand: An Initial Look
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Concept Question 2.10
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The graph on the right shows the market for hamburger, which is in equilibrium.
Hamburger is a normal good, and people alike to eat cheese with hamburger.
Beef is an input to hamburger production.
Suppose that there is a decrease in the number of firms in the market.
1.) Using the line drawing tool, show the effect on the market. Properly label
your new curve
2.) Using the point drawing tool, show the new equilibrium price and quantity.
Label your point 'E'.
Carefully follow the instructions above, and only draw the required objects.
D
23
Quantity of hamburger
Transcribed Image Text:Concept Question 2.10 Question Help The graph on the right shows the market for hamburger, which is in equilibrium. Hamburger is a normal good, and people alike to eat cheese with hamburger. Beef is an input to hamburger production. Suppose that there is a decrease in the number of firms in the market. 1.) Using the line drawing tool, show the effect on the market. Properly label your new curve 2.) Using the point drawing tool, show the new equilibrium price and quantity. Label your point 'E'. Carefully follow the instructions above, and only draw the required objects. D 23 Quantity of hamburger
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