8. Short-run and long-run effects of a shift in demandSuppose that the turkey industry is in long-run equilibrium at a price of $5 per pound of turkey and a quantity of 400 million pounds per year. Suppo:the Surgeon General issues a report saying that eating turkey is bad for your health.The Surgeon General's report will cause consumers to demandturkey at every price. In the short run, firms will respond byShift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of the Surgeon General's report.109SupplyDemand8SupplyPRICE (Dollars per pound)5321080 160 240 320 400 480 560QUANTITY (Millions of pounds)0In the long run, some firms will respond byD2D₁640 720 800until Shift the demand curve, the supply curve, or both on the following graph to illustrate both the short-run effects of the Surgeon General's reportand the new long-run equilibrium after firms and consumers finish adjusting to the news.109SupplyDemand8SupplyDemand080 160 240 320 400 480 560 640 720 800QUANTITY (Millions of pounds)in the longThe new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry isrun.PRICE (Dollars per pound)320

There are various factors that affect the demand and/or supply of a particular good and/or service.

8. Short-run and long-run effects of a shift in demand Suppose that the turkey industry is in long-run equilibrium at a price of $5 per pound of turkey and a quantity of 400 million pounds per year. Suppo: the Surgeon General issues a report saying that eating turkey is bad for your health. The Surgeon General's report will cause consumers to demand turkey at every price. In the short run, firms will respond by 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. 10 9 Supply 8 PRICE (Dollars per pound) 2 1 0 D2 D. 1 80 160 240 320 400 480 560 640 720 800 QUANTITY (Millions of pounds) 0 In the long run, some firms will respond by 中翼中国 Demand Supply until

8. Short-run and long-run effects of a shift in demand Suppose that the turkey industry is in long-run equilibrium at a price of $5 per pound of turkey and a quantity of 400 million pounds per year. Suppo: the Surgeon General issues a report saying that eating turkey is bad for your health. The Surgeon General's report will cause consumers to demand turkey at every price. In the short run, firms will respond by 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. 10 9 Supply 8 PRICE (Dollars per pound) 2 1 0 D2 D. 1 80 160 240 320 400 480 560 640 720 800 QUANTITY (Millions of pounds) 0 In the long run, some firms will respond by 中翼中国 Demand Supply until

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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9 Sony is considering a 10 percent price reduction on its HD TV sets. If the price-elasticity coefficient for the sets in this price range is 0.75, then the price cut will cause Multiple Choice sales quantity to increase and revenues to also increase. seles quantity to increase but revenues to decrease. sales quantity to decrease and revenues to also decrease Seved sales quantity to decrease but revenues to increase
7. Notepads and pens can be considered to be complements. Woodchips are an input to notepads, and plastic is an input to pens. Assume markets for notepads, pens, woodchips and plastic, are all perfectly competitive. Suppose that the equilibrium price of notepads increases, and the equilibrium price of pens decrease. Which of the following could explain these changes? a) A decrease in the supply of plastic b) An increase in the demand for wood chips c) An increase in the demand for plastic d) An increase in the supply of plastic e) Either (b) or (d)
Price of tin and silicone decrease affecting the market for iPhones A)Decrease in supply B)Decrease in demand C)Increase in supply D)Increase in demand
5.19 explain.
10. Price elasticity of supply in the short run and long run The following graph shows the long-run supply curve for pistachios. Place the orange line (square symbol) on the following graph to show the most likely short-run supply curve for pistachios. (Note: Place the points of the line either on N and K or on N and H.) PRICE (Dollars per pound) 48 908 40 0 8 0 0 O 4 N H D Long-Run Supply 2 6 8 10 QUANTITY (Thousands of pounds of pistachios) 12 10 Short-Run Supply (?)
13) . Consider the following supply schedule for shoes. Price Quantity Supplied $5 425 $10 445 $15 465 $20 485 $25 505 $30 525 $35 545 $40 565 Suppose that the price of shoes increases from $25 to $30. Using the mid-point approach, calculate price elasticity of supply.
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1. Jeff Jones at Ice ‘n Carry ('InC') Coolers reduced the price of InC coolers by $10 from the usual $40. Weekly sales increased from 10 to 20 InC Coolers per week. a. What is the arc price elasticity of demand? b. Jeff is considering a further price reduction. What would be the effect of the reduction on revenues? How about profits? Revenues: Profits: Increase/ Decrease / Can't tell Increase/ Decrease / Can't tell
5) Calculate the arc price elasticity of demand for wheat in the two situations below: Farmer Brown's Wheat Old price; $3.40/bu Old quantity; 28,000 bu The Wheat Market Old price; $3.40/bu Old quantity; 2.5 billion bu New price; $3.20/bu New price; $3.20/bu New quantity; 2.525 billion bu New quantity; 35,000 bu Can you account for the difference in elasticities?
13. The variety of supply curves The following graph displays four supply curves (HH, II, JJ, and KK) that intersect at point A .
23. Using the production possibilities table below, please answer the following question: Type of Production Schools Missiles Type of Production Schools Missiles A 0 16 A 0 16 Production Alternatives If the economy were at point D, what would be the opportunity cost of building 4 more schools? 24. Using the production possibilities table below, please answer the following question: B 4 15 B 4 15 Production Alternatives C 8 12 с 8 12 D 12 7 E 16 0 D 12 7 If the economy were at point D, what would be the opportunity cost of building one more missile? Please show your calculation for full points. E 16 0
8. need help