Suppose that granola bars are sold in a perfectly competitive market and that tastes shift toward granola bars so that demand shifts rightward from D1 to D2. Answer the following questions about the consequences of this change in tastes. The following graph shows the market for annual granola bar consumption, which is initially in long - run equilibrium at point D. After the change in tastes and the rightward shift in demand, the market moves to point _____ in the short run and then to point ___ in the long run. On the preceding graph, use the purple line (diamond symbols) to plot the long-run market supply curve for granola bars, making sure that it goes through two of the points A, B, C, or D. According to the graph, the granola bar market is an example of ____ industry. True or False: The average cost at the cost - minimizing level of output is higher for the new marginal firm than it was for the marginal firm before the change in demand. O True
O False