Suppose the market for ice cream is perfectly competitive. Assume that the market is at the

long-term equilibrium.

a)Draw the demand and the market supply and identify the equilibrium point.

b)Draw the AVC, ATC, AFC and MC curves as well as the marginal revenue curve for one firm.

c)Suppose now that the demand decreases. Explain the consequence in the short run and in the long run. (You have to use graphs AND words)