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 pound) 10 run. 9 7 6 2 1 0 0 5 Supply Demand 10 15 20 25 30 35 QUANTITY (Millions of pounds) 40 45 50 Demand Supply The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry is in the long
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 pound) 10 run. 9 7 6 2 1 0 0 5 Supply Demand 10 15 20 25 30 35 QUANTITY (Millions of pounds) 40 45 50 Demand Supply The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry is in the long
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Suppose that the seitan industry is initially operating in long-run equilibrium at a price level of $5 per pound of seitan and quantity of 25 million
pounds per year. Suppose a top medical journal publishes research that animal-alternative protein sources such as seitan could increase your expected
lifespan by 5 years.
The publication 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 publication.
PRICE (Dollars per pound)
10
9
8
PRICE (Dollars per pound)
7
5
2
1
0
10
0
In the long run, some firms will respond by
9
N
1
5
0
10 15 20
Supply
25
30 35
QUANTITY (Millions of pounds)
0 5
Demand
Supply
8
7
K
Demand
2
10
40
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.
45 50
15 20 25
QUANTITY (Millions of pounds)
30 35 40 45
seitan at every price. In the short run, firms will respond by
50
Demand
Supply
Demand
(?)
Supply
▼ until
(?
The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry is
run.
in the long
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