3. Refer to a graph that shows the stock market and costs for individual companies to sell stocks to answer the following questions. 350 400 500 minimum 30 35 40 maximum) 1) Suppose that the initial equilibrium price and quantity in the stock market are $250 and 350 million. Suppose that the demand for stocks rises from Do to [)1 due to COVID 19 pandemic. How much is a new equilibrium price and quantity? How much is a prot-maximizing quantity for each company? How much is the prot? How ma ny companies are there assuming each company has the same cost? {4 points} 2) Suppose that prot attracts new companies to enter the market and entry of new rms lowers the average cost of each company from AC0 to AC1. What will happen to the stock market in the rst graph? Which curve will shift and how does it shift? How much will be the new equilibrium price and quantity? How much is a prot-maximizing quantity for each company? How many companies are in the market in the long run assuming each company has the same cost? Show the long run market supply curve in the stock market in the rst graph. (4 points)