Economics
Short run and Long run industry and representative firm
Canadian red wheat is a normal good, in a perfectly competitive market which is in long run equilibrium. There occurs a boom in the economy-incomes rise. What effect does this have on short run equilibrium? Explain concisely the step-by-step process by which the industry returns to long run equilibrium. Your answer should include the effects on the individual firm's output and profit, as well as any industry-wide adjustments that take place. In addition, show your answer graphically, including the relationship between the firm and the industry.
Must have 4 graphs, short run industry, short run representative firm. Long run industry, long run representative firm.