Starting with the industry in long-run equilibrium explain


Maple-syrup makers strike gold Sugaring season in Vermont is going full blast. Vermont, the biggest U.S. syrup producer, produces about 500,000 gallons a year. In 2007, maple syrup cost an average of $35 a gallon; this year, the price is $45 a gallon. Canada is usually a huge producer, but with a poor season it has seen a 30 percent drop in production. As consumers turn to natural and organic products and buy locally made food, demand for maple syrup has rocketed.

Starting with the industry in long-run equilibrium, explain how the increase in the demand for maple syrup, other things remaining the same, affects the maple syrup market and an individual producer in the short run.

Request for Solution File

Ask an Expert for Answer!!
Econometrics: Starting with the industry in long-run equilibrium explain
Reference No:- TGS01700737

Expected delivery within 24 Hours