Economics 13th Edition by James Gwartney, Richard Stroup, Russell Sobel, David Macpherson

Exercise 4

If coffee suppliers are price takers, how will an unanticipated increase in demand for their product affect each of the following, in a market that was initially in long-run equilibrium?
a. the short-run market price of the product
b. industry output in the short runv
c. profitability in the short run
d. the long-run market price in the industry
e. industry output in the long run
f. profitability in the long run