Suppose the price of bagels in waterloo is currently 075


Suppose the price of bagels in Waterloo is currently $0.75 per bagel. There are 10 low-cost bakeries that can produce bagels, each of which has the supply function Qs= 200P- 100. There are 10 high-cost bakeries that can produce bagels, each of which has the supply function Qs= 200P- 200. (These individual supply functions apply in the short run and the long run.) Which bakeries will be active when the price is $0.75? If the price rises to $1.25, what will be the market supply in the short run? In the long run? Graph the short-run and long-run market supply curves.

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Macroeconomics: Suppose the price of bagels in waterloo is currently 075
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