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The graph below shows the short- and long-run supply (Ssr, Slr) and demand (Dsr, Dlr) curves for water in a metropolitan water district. The price
The graph below shows the short- and long-run supply (Ssr, Slr) and demand (Dsr, Dlr) curves for water in a metropolitan water district. The price ceiling, Pceil, is currently set to be nonbinding. Adjust the ceiling by repositioning the Pceil line to a price that leads to a short-run shortage of 2.1 million cubic feet per month.
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