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writors such as Chapter 9 Perfect Competition 253 Question 2 Suppose that the perfectly competitive market for wheat spaghetti is in long-run equino Sup Suppose
writors such as Chapter 9 Perfect Competition 253 Question 2 Suppose that the perfectly competitive market for wheat spaghetti is in long-run equino Sup Suppose also that campaigns for fighting obesity make students on lots of college Timpuses in the US aware of the fact that excessive pasta (including spaghetti) consum tion has an adverse effect on body weight, and these campaigns pro students to restrict spaghetti consumption. provide an incentive for a . How do the campaigns described above affect the market for wheat spaghetti in the US, that is does the supply or the demand curve for wheat spaghetti shift and in what the short run? direction? How are the equilibrium price and quantity of wheat spaghetti affected in b. What happens to the short-run profit of the typical producer of wheat spaghetti in the US? c. What will be the price of wheat spaghetti in the long run? What profit will producers of wheat spaghetti make in the long run? Explain how this outcome is achieved. Use two graphs: one showing the market supply and demand curves for wheat spaghetti, and another showing the typical firm's demand curve and costs, to support your
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