Question 2.

According to the WSJ article, "Demand for storage space skyrocketed in 2020 as companies raced to position goods for rapid delivery to homes. E-commerce giant Amazon.com, for instance, doubled the size of its fulfillment network in 24 months as its business surged."

Using the same side-by-side diagram you've used when answering Question 1, illustrate the short-run impact of an increase in demand for warehouse space.

Label any new or shifted curves with subscript 1. Label the new short-run equilibrium price P1, market quantity Q1, quantity produced by the individual (representative) firm q1, and representative firm's profit 1. If any of these cannot be illustrated in the diagram, clearly state their values.

Upload a single MS Word, Adobe PDF, or graphics file (JPEG, TIFF, PNG, BMP only) that does not exceed 5MBs with a graph as an answer to this question.