ANSWERS TO CHAPTER 9

Part 1

  1. a. 8

    b. SEE TOP FIGURE. The curve must pass through (8,$6) and be steeper than LONG-RUN SUPPLY.

    c. B, 4

    d. SEE TOP FIGURE. The curve must pass through (4,$4) and be steeper than LONG-RUN SUPPLY.

  2. a. $6

    b. 2

    c. SEE BOTTOM FIGURE

    d. $9

    e. 8

    f. SEE BOTTOM FIGURE


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