Using diagrams for both the industry and a representative firm, illustrate competitiveequilibrium. Assuming constant costs, employ these diagrams to show how (a) an increase and (b) a decrease in market

Using diagrams for both the industry and a representative firm, illustrate competitiveequilibrium. Assuming constant costs, employ these diagrams to show how (a) an increase and (b) a decrease in market demand will upset thatequilibrium. Trace graphically and describe verbally the adjustment processes by whichequilibrium is restored. Now rework your analysis for increasing- and decreasing-cost industries and compare the threesupply curves.

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