Shift the demand curve, the supply curve, or both on the following graph to illustrate both the short-run effects of the Surgeon General's reportand the new long-run equilibrium after firms and consumers finish adjusting to the news.109SupplyDemand87Supply543Demand2170140210280350420490560630700QUANTITY (Millions of cans)The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry isin the longrun.PRICE (Dollars per can) Suppose that the tuna industry is in long-run equilibrium at a price of $5 per can of tuna and a quantity of 350 million cans per year. Suppose theSurgeon General issues a report saying that eating tuna is bad for your health.The Surgeon General's report will cause consumers to demandtuna at every price. In the short run, firms will respond byShift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of the Surgeon General's report.10SupplyDemand87SupplyDemand2170140210280350420490560630700QUANTITY (Millions of cans)In the long run, some firms will respond byuntilPRICE (Dollars per can)

Demand Curve: - demand curve is the graphical way of showing the relationship between the quantity…

Shift the demand curve, the supply curve, or both on the following graph to illustrate both the short-run effects of the Surgeon General's report and the new long-run equilibrium after firms and consumers finish adjusting to the news. 10 Supply Demand 8 7 Supply Demand 1 70 140 210 280 350 420 490 560 630 700 QUANTITY (Millions of cans) 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)

Shift the demand curve, the supply curve, or both on the following graph to illustrate both the short-run effects of the Surgeon General's report and the new long-run equilibrium after firms and consumers finish adjusting to the news. 10 Supply Demand 8 7 Supply Demand 1 70 140 210 280 350 420 490 560 630 700 QUANTITY (Millions of cans) 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

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Question b
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