A popular brand of decorative clay floor tile is priced at $7 per square until a surge in supply forces the price, for a short time, down to $3. Drag the appropriate curve(s) to show the effect of the price drop. To refer to the graphing tutorial for this question type, please click here. G Price ($) 15 14 13 12 11 10 9 8 7 5 4 DLR 3 7 DSR Quantity (thousands) Part 2 (3 points) See Hint As consumers adjust to the increased supply, the demand becomes more elastic. The demand curve pivots from the short run (DSR) to the long run (DLR). In the course of the shift to the long run, the quantity continues to increase. The price partly recovers and in the long run settles at $ per tile.
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