5.Suppose you are a farmer producing wheat in a perfectly competitive agricultural market.You are currently in the long-run equilibrium earning zero economic profit.In the blank under each situation presented below, write whether you would expect "entry of new firms" or "exit of incumbent firms" with respect to how each situation would affect the market price of wheat in the industry.Treat each situation separately.Hint:you may need to refer back to Chapter 2 on supply/demand.(Each blank is worth 3 points.)

a)there has been an increase in the production costs for corn, considered a substitute good for wheat

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b)there has been a decrease in consumer income (wheat is considered a normal good)

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c)a new medical study reveals that consumption of wheat products increases the risk of harmful cholesterol in the bloodstream

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d)buyers of wheat are expected the price of the good to decrease in the future

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e)there has been a substantial decrease in the number of buyers for wheat

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