The graphs in Figure 12-17 represent the perfectly competitive market demand and supply curves for the apple industry an demand and cost curves for a typical firm in the industry. Refer to Figure 12-17. Which of the following statements is true? The current market price is $3 but the price will increase in the future as the market demand increases. The current market price is $3 but the price will fall in the long-run as a

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Question
ts
dings
Figure 12-17
Price
(dollars
per pound)
Market
price
5
4
3
2
0
10
20
30
Supply of
apples
Demand
for apples
40
50
Quantity
(thousands of pounds)
Price and cost
(dollars
per pound)
5
Market 3
price
2
1
0
10
20
MC
#
30
40
50
Quantity
(thousands of pounds)
The graphs in Figure 12-17 represent the perfectly competitive
market demand and supply curves for the apple industry and
demand and cost curves for a typical firm in the industry.
Refer to Figure 12-17. Which of the following statements is true?
The current market price is $3 but the price will increase in the future as
the market demand increases.
The current market price is $3 but the price will fall in the long-run as a
result of a decrease in demand.
The current market price is $3 but the firm will be able to increase the
price in the future.
ATC
D=MR
The current market price is $3 but the price will fall in the long-run as
new firms enter the market.
hatC
av
G
CH
If p
pe
ec
COS
In a
tak
ma
pro
ave
hav
So,
lessage
Chat
Transcribed Image Text:ts dings Figure 12-17 Price (dollars per pound) Market price 5 4 3 2 0 10 20 30 Supply of apples Demand for apples 40 50 Quantity (thousands of pounds) Price and cost (dollars per pound) 5 Market 3 price 2 1 0 10 20 MC # 30 40 50 Quantity (thousands of pounds) The graphs in Figure 12-17 represent the perfectly competitive market demand and supply curves for the apple industry and demand and cost curves for a typical firm in the industry. Refer to Figure 12-17. Which of the following statements is true? The current market price is $3 but the price will increase in the future as the market demand increases. The current market price is $3 but the price will fall in the long-run as a result of a decrease in demand. The current market price is $3 but the firm will be able to increase the price in the future. ATC D=MR The current market price is $3 but the price will fall in the long-run as new firms enter the market. hatC av G CH If p pe ec COS In a tak ma pro ave hav So, lessage Chat
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