Suppose that the u. s. government places a ceiling on the price of a medical drug of $7. 1.) using the point drawing tool, plot the quantity supplied on the supply line and label it. 2.) using the point drawing tool, plot the quantity demanded on the demand line and label it. 3.) using the double arrow line, indicate, via a label, the shortage or surplus. carefully follow the instructions above, and only draw the required objects.

Martha is one producer in the perfectly competitive jelly industry. last year, martha and all of her competitors found themselves earning economic profits. if there is free entry and exit, what do you expect to happen to the number of suppliers in the industry and the price of jelly? the number of suppliers will increase, and the price of jelly will fall. the number of suppliers will decrease, and the price of jelly will increase. the number of suppliers will increase, and the price of jelly will increase. the number of suppliers will decrease, and the price of jelly will fall.