Draw diagrams to show how the curves inFigure 7.5a(Links to an external site.)would change in each of the following 3 cases. In each case, say what would happen to the price and the profit of Apple-Cinnamon Cheerios?

1. A rival company producing a similar brand slashes its prices.
2. The cost of producing Apple-Cinnamon Cheerios rises to $3 per pound.
3. A well-publicized government study shows that General Mills' products are healthier than other breakfast cereals.

https://core-econ.org/the-economy/book/text/07.html#figure-7-5ad

O . Isoprofit curve: $60,000 . Isoprofit curve: $34,000 . Isoprofit curve: $10,000 Isoprofit curve: $0 . Demand curve Price, P (dollars per pound) OHNW AUTO VOOD Feasible set O 20,000 40,000 60,000 80,000 Quantity of Cheerios, Q (pounds)