PRICE (Dollars per pound) PRICE (Dollars per pound) Suppose that the perfectly competitive turkey industry is in long-run equilibrium at a price of $3 per pound of turkey and a quantity of 600 million pounds per year. Suppose 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 supply curve, the demand curve, or both on the following diagram to illustrate these short-run effects of the Surgeon General'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 farther. Supply Demand Demand 0 0 200 400 600 800 1000 1200 QUANTITY (Millions of pounds) 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 Surgeon General's announcement and the new long-run equilibrium after firms and consumers finish adjusting to the Surgeon General's announcement. 200 400 600 800 QUANTITY (Millions of pounds) Supply Demand Demand 1000 1200 Supply
PRICE (Dollars per pound) PRICE (Dollars per pound) Suppose that the perfectly competitive turkey industry is in long-run equilibrium at a price of $3 per pound of turkey and a quantity of 600 million pounds per year. Suppose 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 supply curve, the demand curve, or both on the following diagram to illustrate these short-run effects of the Surgeon General'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 farther. Supply Demand Demand 0 0 200 400 600 800 1000 1200 QUANTITY (Millions of pounds) 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 Surgeon General's announcement and the new long-run equilibrium after firms and consumers finish adjusting to the Surgeon General's announcement. 200 400 600 800 QUANTITY (Millions of pounds) Supply Demand Demand 1000 1200 Supply
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:PRICE (Dollars per pound)
1
PRICE (Dollars per pound)
Suppose that the perfectly competitive turkey industry is in long-run equilibrium at a price of $3 per pound of turkey and a quantity of 600 million
pounds per year. Suppose 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 supply curve, the demand curve, or both on the following diagram to illustrate these short-run effects of the Surgeon General'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 farther.
Supply
Demand
Demand
°
200
400
600
800
1000
1200
QUANTITY (Millions of pounds)
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 Surgeon General's
announcement and the new long-run equilibrium after firms and consumers finish adjusting to the Surgeon General's announcement.
Supply
5
Demand
0
200
400
600
800
QUANTITY (Millions of pounds)
Demand
1000
1200
Supply
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