1. Suppose we are analyzing the market for streaming video services like Netflix or Hulu. Draw a supply and demand diagram representing this market. Label the equilibrium and the equilibrium price and quantity. Suppose there is a global pandemic and many people need to start working from home or are forced to temporarily take time off from work. With people spending more time at home and possibly spending less time working, what do we expect to happen in the market for streaming video services? Show this change using your diagram and label all relevant points.
2. Suppose we are considering a perfectly competitive firm. Diagram the short-run equilibrium of the perfectly competitive firm and label the profit-maximizing level of output of the firm. Then label the profit of the firm in the short run. In a second diagram show the long-run equilibrium of the firm and its profit-maximizing level of output.
3. Suppose we are considering a monopoly firm. Diagram the equilibrium and profit-maximizing decision of the monopoly firm. Label the profit of the monopoly firm in the diagram.
4.Consider our study of monopolistic competition. Draw the diagram for a monopolistically competitive firm, label the level of output it will choose to produce in the short-run, and label the profit of the firm.