4)Kathryn's Kites is a profit-maximizing firm operating in a competitive market.

a. Draw a graph of Kathryn's firm next to a graph for the market, assuming the market isin long-run equilibrium.

b. Now assume the market demand for kite increases. Redraw a graph of Kathryn's firmnext to a graph for the market in the short run. Be sure to note all the appropriate changesto the market demand and the equilibrium price and quantity. What happens to Kathryn'sprofit because of this change?

c. Now, consider the market in the long run. What would you expect to happen to marketsupply, equilibrium price, and equilibrium quantity? What happens to Kathryn's profit inthe long run? Illustrate this scenario in the graph you drew in part b.