Q1.Suppose the market for gourmet chocolate is in long-run equilibrium, and an economic downturn has reduced consumer discretionary incomes. Assume chocolate is a normal good, and the chocolate producers have identical cost structures. a. What will happen to the demand curve?shift right, shift left, no shift? (circle to the right one) shift right not shift shift left . b. What will happen to profits for chocolate producers in the short run?increase, decrease, or no change? (circle to the right one) increase not change decrease . c. Chocolate producers will (circle to the right one) enter exit the market. d. What will happen to the long-run supply curve?increase, decrease, or no change? (circle to the right one) not change shift left shift right .

Q2. Use the figure below to answer the following questions.