Suppose that the market for kebabs in Sydney is in a long-run competitive equilibrium with 1,000 shops each selling 100

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Suppose That The Market For Kebabs In Sydney Is In A Long Run Competitive Equilibrium With 1 000 Shops Each Selling 100 1 (51.1 KiB) Viewed 37 times

Suppose that the market for kebabs in Sydney is in a long-run competitive equilibrium with 1,000 shops each selling 100 kebabs per day at a price of $8 each. A. Illustrate the market equilibrium using a graph for the entire market & one for a typical shop in the market. B. Suppose that there is a large increase in the number of burrito shops in Sydney. Use your graphs to illustrate the short-run effect of this change on the equilibrium price and quantity of kebabs sold in Sydney as well as on the profit of a typical kebab shop. C. Next, use the graphs to show how each of these variables will be affected in the long run.