Read the NEWS ARTICLE

Tasmanian Supermarkets Face Egg Shortage with Prices Predicted to Rise

Hobart News

Georgie Marr

20^th April 2022

https://www.triplem.com.au/story/tasmanian-supermarkets-face-egg-shortage-with-prices-predicted-to-rise-198136

after reading the article, explain the two questions

1. Assume 'eggs are sold in a perfectly competitive market and firms are making break-even. Explain and illustrate graphically, the effect of change in market price on the short-run position of a single firm selling eggs.

2. Based on the short-run position identified in Q1explain and illustrate graphically the effect of entry/exit on the long-run position of the firm.

(it should include graphs for both markets as well as individual firms.)

The framework for the explanation should be to:

Identify the key issue in the questions provided

Analyse these key issues in the news article,

Use the appropriate economic model to illustrate the key issues graphically.

Fully label the model and clearly indicate where changes occur

Explain the model and discuss the outcome

Provide the list of references used in answering the questions