8. Short-run and long-run effects of a shift in demandSuppose that the tempeh industry is initially operating in long-run equilibrium at a price level of $5 per pound of tempeh and quantity of 125 millionpounds per year. Suppose a top medical journal publishes research that animal-alternative protein sources such as tempeh could decrease yourexpected lifespan by 3 years.The publication is expected to cause consumers to demandShift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of the publication.PRICE (Dollars per pound)10982100+25SupplyDemandtempeh at every price. In the short run, firms will respond by50 75 100 125 150 175 200 225 250QUANTITY (Millions of pounds)DemandSupply In the long run, some firms will respond byShift the demand curve, the supply curve, or both on the following graph to illustrate both the short-run effects of the publication and the new long-run equilibrium after firms and consumers finish adjusting to the news.PRICE (Dollars per pound)108210025SupplyDemand50 75 100 125 1:50 175 200 225 250QUANTITY (Millions of pounds)Demand-0-untilSupplyThe new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry isrun.in the long

An efficient consumption level provides maximum satisfaction from economic activities. At this…

8. Short-run and long-run effects of a shift in demand Suppose that the tempeh industry is initially operating in long-run equilibrium at a price level of $5 per pound of tempeh and quantity of 125 million pounds per year. Suppose a top medical journal publishes research that animal-alternative protein sources such as tempeh could decrease your expected lifespan by 3 years. The publication is expected to 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 publication. PRICE (Dollars per pound) 2 0 25 50 75 100 125 Supply Demand 175 200 225 tempeh at every price. In the short run, firms will respond by QUANTITY (Millions of pounds) Demand Supply

8. Short-run and long-run effects of a shift in demand Suppose that the tempeh industry is initially operating in long-run equilibrium at a price level of $5 per pound of tempeh and quantity of 125 million pounds per year. Suppose a top medical journal publishes research that animal-alternative protein sources such as tempeh could decrease your expected lifespan by 3 years. The publication is expected to 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 publication. PRICE (Dollars per pound) 2 0 25 50 75 100 125 Supply Demand 175 200 225 tempeh at every price. In the short run, firms will respond by QUANTITY (Millions of pounds) Demand Supply

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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