Suppose there are 1000 hot-pretzel stands operating in Toronto. The market for pretzels is in long-run competitive equilibrium. Draw the current...

Suppose there are 1000 hot-pretzel stands operating in Toronto. The market for pretzels is in long-run competitive equilibrium.

a. Draw the current equilibrium, using graphs for the entire market (e.g., industry diagram) and for an individual pretzel stand (e.g., firm diagram). Label the diagrams carefully and write in words all of the changes that you can identify (explain in words + graphs)

(Assume that the firm is in long run equilibrium; hint: hot-pretzel stands is a perfectly competitive market)