Short-run and Long-run industry dynamics and representative firm decisions [15 pts] Assume that in the market for cat food the long-run equilibrium price for a box of wet cat food, that includes 20 pouches of cat food portions, is $20. Australia's Cat Protection Society publishes a recommendation that only wet food (and not dry food) should be given to cats. In the short run, what will happen to the price of cat wet food? Explain using a diagram. [5 pts] In the short run, how will firms respond to the change in price described in part 1.? What will happen to profits? Explain using the same diagram. [4 pts] Given the situation described in part 2., what can we expect to happen to the number of wet cat food producers in the long run? [6]