Figure 3: Industry Firms MC ATC MR-P 16. Refer to Figure 3: Industry Firms. The market for a normal good is characterized by demand curve D. and supply curve Ss. A decrease in income will cause: the demand curve to shift Di, causing firms to earn economic profits. The supply curve will not change. 10 price will rise and firms will earn normal profits. b) the supply curve to shift D, causing firms to earn econom to , causing firms to earn economic profits. The supply curve will decrease to Si as firms exit the industry. Eventually the market price w e industry. Eventually the market price will rise and firms will earn above-normal profits. the demand curve to shift Du, causing firms to earn economic losses. The supply Si as firms exit the industry. Eventually the market price will rise and fin d) the supply curve to shift Si, causing firms to earn economic D, as firms enter the industry. Eventually the market pric is to earn economic losses. The supply curve will decrease to market price will rise and firms will earn normal profits. hims to earn economic losses. The demand curve will decrease to entually the market price will fall and firms will earn normal profits.

"Get 15% discount on your first 3 orders with us"
Use the following coupon
"FIRST15"

Order Now