I need help with hw. ### Long-Run Market Adjustments#### Conceptual UnderstandingIn the long run, some firms will respond by **entering or exiting the market** until **economic profits are zero**.Shift the demand curve, the supply curve, or both on the following graph to illustrate both the short-run effects of the CDC's announcement and the new long-run equilibrium after firms and consumers finish adjusting to the news.#### Graph ExplanationThe provided graph is an essential tool for understanding the market dynamics and adjusting to new equilibriums. Here is a detailed description:- **Axes**: - The horizontal axis is labeled as "QUANTITY (Millions of cans)", ranging from 0 to 500. - The vertical axis is labeled as "PRICE (Dollars per can)", ranging from 0 to 10.- **Supply and Demand Curves**: - The **demand curve** is downward sloping (marked in blue), indicating that as the price decreases, the quantity demanded increases. - The **supply curve** is upward sloping (marked in orange), indicating that as the price increases, the quantity supplied increases.- **Equilibrium Point**: - The initial equilibrium point is marked where the demand and supply curves intersect.- **Shifts**: - Any shifts in the demand or supply curves need to be illustrated on this graph to visualize the new short-run and long-run equilibria.#### Strategic PlanningThe new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry is **upward sloping** in the long run. ### 8. Short-run and long-run effects of a shift in demandSuppose that the tuna industry is in long-run equilibrium at a price of $5 per can of tuna and a quantity of 250 million cans per year. Suppose that the Centers for Disease Control (CDC) announces that a chemical found in tuna is causing bacterial infections to spread around the world.The CDC's announcement will cause consumers to demand _(less/more)_ tuna at every price. In the short run, firms will respond by _\_\_\_\_\_\_ (increasing/decreasing)_ prices.Shift the demand curve, the supply curve, or both on the following graph to illustrate these **short-run effects** of the CDC's announcement.#### Explanation:Below is a graph depicting the typical supply and demand curves for tuna in a competitive market.**Graph Description:**- **Axes:** - **X-axis:** Quantity (Millions of cans) - **Y-axis:** Price (Dollars per can)- **Supply Curve (Orange Line):** - Represented as an upward-sloping line indicating that as the price of tuna increases, the quantity supplied increases.- **Demand Curve (Blue Line):** - Represented as a downward-sloping line indicating that as the price of tuna decreases, the quantity demanded increases.- **Equilibrium Point (Black dashed lines):** - The point where the supply and demand curves intersect. - Initial equilibrium occurs at a price of $5 per can and a quantity of 250 million cans per year.#### Short-Run Effects:1. **Demand Shift:** - Due to the CDC announcement, consumers will demand less tuna at every price. - This will cause a leftward shift in the demand curve.2. **New Short-Run Equilibrium:** - The intersection of the new demand curve with the supply curve will determine the new equilibrium price and quantity in the short run. - Firms will decrease prices in response to the reduced demand.3. **Visuals:** - The graph will have a new intersection point showing a decreased equilibrium quantity and a decreased equilibrium price.This scenario illustrates the basic economic principles of market equilibrium and the impact of external factors on demand.

If the CDC announces that tuna causes bacterial infection, it will alter the preferences of the…

In the long run, some firms will respond by until Shift the demand curve, the supply curve, or both on the following graph to illustrate both the short-run effects of the CDC's announcement and the new long-run equilibrium after firms and consumers finish adjusting to the news. 10 Supply Demand 8 7 Supply 4 3 Demand 2 1 downward sloping horizontal 50 100 150 200 250 300 350 400 450 500 QUANTITY (Millions of cans) vertical upward sloping The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry is in the long run. PRICE (Dollars per can)

In the long run, some firms will respond by until Shift the demand curve, the supply curve, or both on the following graph to illustrate both the short-run effects of the CDC's announcement and the new long-run equilibrium after firms and consumers finish adjusting to the news. 10 Supply Demand 8 7 Supply 4 3 Demand 2 1 downward sloping horizontal 50 100 150 200 250 300 350 400 450 500 QUANTITY (Millions of cans) vertical upward sloping The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry is in the long run. PRICE (Dollars per can)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

I need help for these questions l.
Mark is currently earning $44,000 a year. He has worked for this firm for 5 years. He is considering a job that will increase his lifetime earnings by $240,000 but that requires a Ph.D. in finance. The job will mean also attending a full-time finance program for four years at an annual cost of $28,500. Mark already completed an MBA, for which he spent $86,000 in tuition and books. Would he take the job and attend the Ph.D. program? Calculate: Insutructions: Use ono decimals. Use commas (30,000, not 30000). Opportunity costs of this decision = $ MC = $ MB = $ Sunk Costs = $
Typed plzz
Explain Emerging trends in e-HRM?
How can you make money from waste? what occupation it can give to people?
How did you get the formula for letter B?
Give an example for how How an AIS can add value to an organization?
The waste Management faud case What impact did the fraud have on the company? What recommendations would you give the company to prevent fraud?
can you please explain step 4 again, I can't see whats written there.
How do employees adapt to their workplace environment?
economic factors thst affect healthy eating
blanks C and D?