Suppose the pizza market in the S.U. area is competitive. Assume the market has reached a long-run competitive equilibrium.
a. Graphically represent the pizza market below. Be sure to show two pictures, one of the pizza market and another of the individual pizzeria.
b. Suppose there is a large increase in student enrollment at S.U. How will this affect the market for pizza and the individual pizzeria? Explain and demonstrate on your graphs in part a.
c. Based on your answer in part b, what adjustments will occur in this market overtime? Explain and demonstrate on your graphs in part a.