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QUESTION

Please help me with this quick graph from the attachment below!!! a. Assuming the cookie industry is perfectly competitive, demonstrate using market

Please help me with this quick graph from the attachment below!!!

a. Assuming the cookie industry is perfectly competitive, demonstrate using market supply and demand curves the effect of this decline in demand on equilibrium price and quantity in the short run.

Instructions:Using the graphs above, shift the market curve(s) appropriately and then use the tool 'EQ' to identify the new equilibrium price and quantity.

b. Assuming a cookie firm was in equilibrium before the change in demand, and that it is a constant-cost industry, demonstrate the effect of the decline on equilibrium price for an individual cookie firm in the short run.Instructions: Using the graphs above, use the tool 'MR' to draw the new marginal revenue curve facing the firm between Q = 0 and Q = 1,000. Then use the 4-point tool 'A' to identify the firm's profit or loss.

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