8. Short-run and long-run effects of a shift in demandSuppose that the chicken industry is in long-run equilibrium at a price of $5 per pound of chicken and a quantity of 300 million pounds per year.Suppose that WebMD claims that the bacteria found in chicken will decrease your expected lifespan by 3 years.chicken at every price. In the short run, firms will respond byWebMD's claim will cause consumers to demandShift the demand curve, the supply curve, or both on the following graph to illustrate these short-run elffects or WEBMD's claim.10SupplyDemandSupplyDemand60120180240 300 300420480540600QUANTITY (Millions of pounds)In the long run, some firms will respond byuntilPRICE (Dolars per pound) Shift the demand curve, the supply curve, or both on the following graph to illustrate both the short-run effects of WEDMD's claim and the new long-run equilibrium after firms and consumers finish adjusting to the news.10SupplyDermandSupply31Demand60120180 240 30 360 420 480540600QUANTITY (Millions of pounds)The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry isin the longrun.(punod Jed sJBJog) zOIHd

Given, Long-run equilibrium price = $5 Long-run equilibrium quantity = 300 million

Answered: 8. Short-run and long-run effects of a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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5.19 explain.
Starting from an equilibrium condition, consider an increase in income in a perfectly com-petitive market with a normal good. (a) Draw the MC, ATC and price level on the same graph before and after the change in income. (b) What will happen to the number of firms in the long-run? (c) If the number of firms change, what will happen to the short-run supply curve? (d) What’s the long-run production and price level. (e) Draw the long-run supply curve.
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Below is a table revealing information pertaining to the supply of books. Point Price (RM) Quantity supplied J 8 50 K 9 70 10 80 M 11 88 N 12 95 P 13 100 Required: Based on the information from the table above, calculate the price elasticity of supply (using the Mid-Point formula) and classify the type of elasticity based on your answer for each of the point movements as below: (i) Point J to Point K (ii) Point N to Point P
20.Suppose a demand for good produced by a certain industry changes then answer the following questions:1- What will be the affect of change in demand on the output of the firm and industry in short run?2- What will be the affect of change in demand on the output of the firm and industry in long run?3-For what reason the affect of change in demand on firm's and industry's output differ in short and long run?4- Will the condition of zero economic profit be met in long run? how?
Draw a non-linear supply curve which is elastic at lower price levels, unit elastic at moderate price levels and inelastic at higher price levels. Explain why this kind of supply curve shows behavior of firms dealing with issues of capacity utilization at their factories in response to price changes. Given that demand for wheat is inelastic, show graphically and explain in detail how an improvement in farming technology which increases wheat production can reduce income of farmers. Explain why OPEC has been unable to keep prices of oil high in the long run, based on the changes in demand and supply elasticity of oil.
51 / 69 75% 9. Table: Impact of Simultaneous Shifts on Equilibrium Shift in Shift in Supply Quantity A Export PDF Price Demand Create PDF May increase, Edit PDF decrease or Leftward Leftward Decreases remain Comment unchanged May increase, Da Combine F decrease or Rightward Rightward Increases Adobe Acrobat Pr remain unchanged Combine bao or mor into a single PDF May increase, decrease or Learn mo Decreases Leftward Rightward remain unchanged N Organize F May increase, Redact decrease or Increases Rightward remain U Protect Leftward unchanged Store and share 図

10. Price elasticity of supply in the short run and long run The following graph shows the short-run supply curve for persimmons. Place the orange line (square symbol) on the following graph to show the most likely long-run supply curve for persimmons. (Note: Place the points of the line either on W and P or on W and I.) PRICE (Dollars per pound) 24 20 Co 16 0 0 W Short-Run Supply 2 4 6 8 10 QUANTITY (Thousands of pounds of persimmons) 12 Long-Run Supply ?
8. need help
just answser number you got the answer .75 i got it something else would you please explain more how you got the answer as .75 and number question number 4 thank you Calculate the price elasticity of supply for each of the following combinations of price and quantity supplied. In each case, determine whether supply is elastic, inelastic, perfectly elastic, perfectly inelastic, or unit elastic in each case. Price falls from $2.25 to $1.75; quantity supplied remains at 600 units. Price increases from $1.75 to $2.25; quantity supplied increases from 466.67 units to 600 units.
Q23
Price Supply $ 300.00 $ 275.00 $ 250.00 $ 225.00 $ 200.00 $ 175.00 $ 150.00 $ 125.00 $ 100.00 $ 75.00 500 450 400 350 300 250 200 150 100 50 $ 50.00 From the supply curve, use the midpoint method to calculate the elasticity of supply when the price falls from $225 to $200. O 1 O 0.89 O 0.5 O 1.31

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