Based on the article "Syrup Makers Worry Warm Weather Will Sap Their Season" from the March...
Based on the article "Syrup Makers Worry Warm Weather Will Sap Their Season" from the March 4, 2017 issue of the Wall Street Journal, please respond to the following questions:
(a) Discuss whether you think the maple syrup production industry reflects a purely competitive market.
(b) Assuming a purely competitive market, illustrate graphically a long run run equilibrium for the market as a whole and also for a single representative firm firm in this industry.
(c) What has been happening to the demand for maple syrup? Why?
(d) Illustrate graphically on your diagrams in (b) what effect, in the short run, the change in maple syrup demand will have on the market price and the individual producer.
(e) What will happen in the long run, given your answers to part (d)? Explain.
(f) What do you think the long-run supply curve looks like for the
maple syrup production industry? Why? What impact would an increase
in demand for maple syrup have on the long-run equilibrium price
and industry output? Illustrate your answer graphically.
(g) What impact do you think climate change will have on the maple syrup syrup industry?
Homework Answers
(a) The Maple syrup industry has many buyers and many sellers with free entry and exit of firms and perfect information. So this industry is purely competitive.
(b) 
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