Click the following icon to view additional information necessary to complete the exericse. Suppose market demand for oil increases to D2, as illustrated in the reference figure. In the graph for the representative firm, show the new long-run average cost curve. Using the three-point curved line drawing tool, on the figure to the right, graph the new long-run average cost curve. Label this curve LRAC2. Carefully follow the instructions above, and only draw the required object. Dollars per barrel 360 340- 320- 300- 280- 260- LRAC 240- 220- 200- 180- 160- 140- 120- 100- 80- 60- 40- 20 0.0 0.3 0.6 0.9 1.2 1.5 1.8 2.1 2.4 2.i Output (barrels per day in 100s) 340- 320- 300- 280- 260- 5 S The figure to the right shows the initial market supply (S) and market demand (D) curves for the oil industry along with the industry's long-run supply curve (SL). Movement up along the long-run industry supply curve is indicated by the rightward shift in demand to D2. Dollars per barrel 360 240- 220- 200- 180- 160- 140- 120- 100- 80- S 60- 40- 20- 0.0 0.4 0.8 1.2 1.6 D2 2.0 2.4 2.8 Output (barrels per day in 10,000s)