Provide a pair of fully labeled diagrams showing the typical firm and industry supply and demand to illustrate the impact of this shift in demand.

100 Workbook Summer 2014

Many identical firms each with total costs C = q2 + 4 initially face market demand D0 = 80 − 10p but the market grows to D1 = 120 − 10p. Provide a pair of fully labeled diagrams showing the typical firm and industry supply and demand to illustrate the impact of this shift in demand.

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