4. Short-run and long-run effects of a shift in demand Suppose that the shrimp industry is in long-run equilibrium at a price of $5 per pound of shrimp and a quantity of 200 million pounds per year. Suppose the Surgeon General issues a report saying that eating shrimp is bad for your health. The Surgeon General's report will cause consumers to demand Shift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of the Surgeon General's report. PRICE (Dollars per pound) 10 9 8 2 1 0 Supply shrimp at every price. In the short run, firms will respond by Demand Demand - Supply
4. Short-run and long-run effects of a shift in demand Suppose that the shrimp industry is in long-run equilibrium at a price of $5 per pound of shrimp and a quantity of 200 million pounds per year. Suppose the Surgeon General issues a report saying that eating shrimp is bad for your health. The Surgeon General's report will cause consumers to demand Shift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of the Surgeon General's report. PRICE (Dollars per pound) 10 9 8 2 1 0 Supply shrimp at every price. In the short run, firms will respond by Demand Demand - Supply
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter5: Elastic And Its Application
Section: Chapter Questions
Problem 3PA: Suppose the price elasticity of demand for heating oil is 02. in the short run and 0.7 in the long...
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