1. You grow and sell wheat domestically. Assume the domestic market has a large number of buyers and sellers. This year wheat imports increased due to a great year in wheat production overseas, driving domestic prices down. The domestic wheat price fell below your average cost ofproduction butisaboveyouraveragevariablecost.You'vebeenuplaterunningthesenumbers,andyourniece asks why you're so stressed out. You answer that you aren't making your lease payments, and you've been considering whether you should shut down this year.
   1. Willyoushutdownornotthisyear? Whyorwhy not?(2 points)
   2. Supposeasignificantnumberofyourfellowfarmersshutdownthisyearinresponsetothe price dip. How will that impact the elasticity of the aggregate supply curve? (1 point)
   3. Aftertheelasticityof theaggregateScurvechanges,howmightthedomesticequilibrium price of wheat change? (1 point)
   4. Whatdetermineswhetheryouwillstayinbusinessinthelongrun?(1 point)