Imagine that the perfectly competitive turkey industry is in long-run equilibrium at a price of $3 per kilogram of turkey and a quantity of 600 million kilograms per year. Imagine the Department of Health issues a report saying that eating turkey is bad for your health. The Department of Health's report will cause consumers to demand turkey at every price. In the short run, firms will respond by Shift the supply curve, the demand curve, or both on the following diagram to illustrate these short-run effects of the Department of Health's announcement. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little further. PRICE (Dollars per kg) 0 200 400 600 800 Supply Demand Demand 1000 1200 QUANTITY OF OUTPUT (Millions of kgs) In the long run, some firms will respond by Supply (?) until Shift the supply curve, the demand curve, or both on the following diagram to illustrate both the short-run effects of the Department of Health's announcement and the new long-run equilibrium after firms and consumers finish adjusting to the Department of Health's announcement. Supply Demand PRICE (Dollars per kg) PRICE (Dollars per kg) 5 0 200 400 600 800 Supply Demand Demand 1000 1200 QUANTITY OF OUTPUT (Millions of kgs) In the long run, some firms will respond by Supply until Shift the supply curve, the demand curve, or both on the following diagram to illustrate both the short-run effects of the Department of Health's announcement and the new long-run equilibrium after firms and consumers finish adjusting to the Department of Health's announcement. 1 Supply 5 Demand 0 200 Demand 400 600 800 QUANTITY OF OUTPUT (Millions of kgs) 1000 1200 Supply
Imagine that the perfectly competitive turkey industry is in long-run equilibrium at a price of $3 per kilogram of turkey and a quantity of 600 million kilograms per year. Imagine the Department of Health issues a report saying that eating turkey is bad for your health. The Department of Health's report will cause consumers to demand turkey at every price. In the short run, firms will respond by Shift the supply curve, the demand curve, or both on the following diagram to illustrate these short-run effects of the Department of Health's announcement. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little further. PRICE (Dollars per kg) 0 200 400 600 800 Supply Demand Demand 1000 1200 QUANTITY OF OUTPUT (Millions of kgs) In the long run, some firms will respond by Supply (?) until Shift the supply curve, the demand curve, or both on the following diagram to illustrate both the short-run effects of the Department of Health's announcement and the new long-run equilibrium after firms and consumers finish adjusting to the Department of Health's announcement. Supply Demand PRICE (Dollars per kg) PRICE (Dollars per kg) 5 0 200 400 600 800 Supply Demand Demand 1000 1200 QUANTITY OF OUTPUT (Millions of kgs) In the long run, some firms will respond by Supply until Shift the supply curve, the demand curve, or both on the following diagram to illustrate both the short-run effects of the Department of Health's announcement and the new long-run equilibrium after firms and consumers finish adjusting to the Department of Health's announcement. 1 Supply 5 Demand 0 200 Demand 400 600 800 QUANTITY OF OUTPUT (Millions of kgs) 1000 1200 Supply
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Imagine that the perfectly competitive turkey industry is in long-run equilibrium at a price of $3 per kilogram of turkey and a quantity of 600 million kilograms per year. Imagine the department of health issues a report saying that eating turkey is bad for your health.
Transcribed Image Text:Imagine that the perfectly competitive turkey industry is in long-run equilibrium at a price of $3 per kilogram of turkey and a quantity of 600 million
kilograms per year. Imagine the Department of Health issues a report saying that eating turkey is bad for your health.
The Department of Health's report will cause consumers to demand
turkey at every price. In the short run, firms will respond by
Shift the supply curve, the demand curve, or both on the following diagram to illustrate these short-run effects of the Department of Health's
announcement.
Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back
to its original position, just drag it a little further.
PRICE (Dollars per kg)
0
200
400
600
800
Supply
Demand
Demand
1000
1200
QUANTITY OF OUTPUT (Millions of kgs)
In the long run, some firms will respond by
Supply
(?)
until
Shift the supply curve, the demand curve, or both on the following diagram to illustrate both the short-run effects of the Department of Health's
announcement and the new long-run equilibrium after firms and consumers finish adjusting to the Department of Health's announcement.
Supply
Demand
Transcribed Image Text:PRICE (Dollars per kg)
PRICE (Dollars per kg)
5
0
200
400
600
800
Supply
Demand
Demand
1000
1200
QUANTITY OF OUTPUT (Millions of kgs)
In the long run, some firms will respond by
Supply
until
Shift the supply curve, the demand curve, or both on the following diagram to illustrate both the short-run effects of the Department of Health's
announcement and the new long-run equilibrium after firms and consumers finish adjusting to the Department of Health's announcement.
1
Supply
5
Demand
0
200
Demand
400
600
800
QUANTITY OF OUTPUT (Millions of kgs)
1000
1200
Supply
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