run and long-run effects of a shift in demand Suppose that the jackfruit industry is initially operating in long-run equilibrium at a price level of $5 per pound of jackfruit and quantity of 100 million pounds per year. Suppose a leading foodle video blogger raises awareness for a scholarly article that links jackfruit consumption to healthy skin. The viral video is expected to cause consumers to demand Jackfruit 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 viral video. PRICE (Dollars per pound) 1 0 9 29 40 Supply Demand 100 120 140 160 160 200 QUANTITY (Milions of pounds) 10 Demand 10 Supply

run and long-run effects of a shift in demand Suppose that the jackfruit industry is initially operating in long-run equilibrium at a price level of $5 per pound of jackfruit and quantity of 100 million pounds per year. Suppose a leading foodle video blogger raises awareness for a scholarly article that links jackfruit consumption to healthy skin. The viral video is expected to cause consumers to demand Jackfruit 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 viral video. PRICE (Dollars per pound) 1 0 9 29 40 Supply Demand 100 120 140 160 160 200 QUANTITY (Milions of pounds) 10 Demand 10 Supply

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

BigSwaba Corp produces virus home test kits which it sells in the market. It pays a marketing company to post Instagram images of people using the kits in the comfort of their own homes. The demand for the kits and cost of production are as follows: 1 1 Cost: C=200+=q´ +m 1/2 Demand: p=48+m/: Where m is the firm's marketing expenditure. Assume the CEO of BigSwaba asks you to help the company maximize profit. а. How many kits should the company sell and at what price? b. What is the demand elasticity at this output level? C. What should their marketing budget be? Assume the CEO of BigSwaba realizes her bonus will determined not by profits, but by the firm's revenue. Maintaining the same marketing budget as in part a: d. What quantity should the firm produce to maximize revenue?
Suppose that the jackfruit industry is initially operating in long-run equilibrium at a price level of $5 per pound of jackfruit and quantity of 150 million pounds per year. Suppose that the Food and Drug Administration (FDA) reports that compounds naturally occurring in jackfruit are linked to chronic illness. The FDA's research is expected to cause consumers to demand Shift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of the FDA's research. PRICE (Dollars per pound) 17 2 1 O 0 0 30 Supply Demand jackfruit at every price. In the short run, firms will respond by 60 90 120 150 180 210 240 270 300 QUANTITY (Millions of pounds) Demand Supply
Let Inverse market demand be the linear form: P = 39 – 0.009 Q; P is price and Q is output. Technology for producing Q is identical for all firms and all firms face identical input prices. Find out the equilibrium Price, quantity and the number of firms in the Long run.
Illustrate the market demand curve for Pepsi Industry if the quantity demanded is lower when the price is increasing.
Please explain in detail.
Suppose that the tofu industry is initially operating in long-run equilibrium at a price level of $5 per block of tofu and quantity of 25 million blocks per year. Suppose a top medical journal publishes research that animal-alternative protein sources such as tofu could increase your expected lifespan by 4 years. The publication is expected to cause consumers to demand tofu 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 publication. PRICE (Dollars per block) 2 1 Supply Demand Demand 0 05 10 15 20 25 30 35 40 45 50 QUANTITY (Millions of blocks) In the long run, some firms will respond by Supply until Shift the demand curve, the supply curve, or both on the following graph to illustrate both the short-run effects of the publication and the new long- run equilibrium after firms and consumers finish adjusting to the news. PRICE (Dollars per block) 2 10 9 Supply…
A manufacturing business can supply 60 plasma TV sets per month at a price of $280 per set, or sell 140 plasma TV sets if the price is $370 per set. A group of retailers will buy 80 plasma TV’s if the price is $350 per pair and 120 plasma TV’s if the price is $300 per set. Given that the demand and supply functions must be linear: Find the linear equations representing both demand and supply Find the point of market equilibrium (number of TVs: q) and the price per unit (p) at that point.
Will supply curves have the same shape in allmarkets? If not, how will they differ?
Discuss the scenarios below. Please treat each scenario separately. (i) You are the manager of a local restaurant. You notice that when you lower the price of your meals, your total revenue rises. What conclusion can you draw about the demand for your restaurant's meal? (ii) For a car manufacturing industry, why does the elasticity of supply generally increase as more time passes after a price change? (iii) Over 20 years period, tuition fees at a university have increased by 60%. At the same time, the number of students enrolled for the courses at the same university had increased from 20,000 to over 32,000. Based on the Law of demand, when a price of a product increases the demand for the same product will reduce. Based on the scenario of the university, do you think the law of demand is untrue? Please explain your conclusion using appropriate graphs.
A retail chain will buy 900 cordless phones if the price is $30 each and 800 if the price is $40. A wholesaler will supply 350 phones at $40 each and 1400 at $70 each. Assuming that the supply and demand functions are linear, find the market equilibrium point and explain what it means.
Edison's Fire Engines is the sole seller of fire engines in the fictional country of Pyrotania. Initially, Edison produced eight fire engines, but he has decided to increase production to nine fire engines. The following graph shows the demand curve Edison faces. As you can see, to sell the additional engine, Edison must lower his price from $80,000 to $60,000 per fire engine. Note that while Edison gains revenue from the additional engine he sells, he also loses revenue from the initial eight engines because he sells them all at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial eight engines by selling at $60,000 rather than $80,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $60,000. 100 90 PRICE (Thousands of dollars per fire engine) 8 80 70 60 50 40 30 10 0 Edison 0 1 O True 2 O False + 6 3 4 5 7 QUANTITY (Fire…
Q5.39 Homework Answered Suppose that the demand for shoes is elastic, but the supply is inelastic. In the market for belts, the demand and the supply of belts are elastic. Assume that everything else is the same and that the increase in costs reduces quantities supplied in each case by the same amount at each price. In which market will a change in the costs of inputs have the greatest effect on the price? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. Shoes Belts The changes would be the same as the change in costs are identical. X Your answer It does not make a difference. It is the elasticity of demand that influences the size of the change in the price. Ancuiered