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 jackfruit at every price. In the short run, firms will respond by
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 jackfruit at every price. In the short run, firms will respond by
Chapter6: Elasticities
Section: Chapter Questions
Problem 19P
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Question
![In the long run, some firms will respond by
Shift the demand curve, the supply curve, or both on the following graph to illustrate both the short-run effects of the FDA's research and the new
long-run equilibrium after firms and consumers finish adjusting to the news.
PRICE (Dollars per pound)
10
9
6
K
i
n.
1
0
0
Supply
Demand
30 60 90 120 150 180 210 240 270 300
QUANTITY (Millions of pounds)
Demand
10
Supply
until
?
The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry is
un.
in the long](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F04f13172-80bc-4f0b-849e-bbea6319380f%2F69b216d6-0551-4646-9798-c4b846b28df5%2Fhx92tdp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:In the long run, some firms will respond by
Shift the demand curve, the supply curve, or both on the following graph to illustrate both the short-run effects of the FDA's research and the new
long-run equilibrium after firms and consumers finish adjusting to the news.
PRICE (Dollars per pound)
10
9
6
K
i
n.
1
0
0
Supply
Demand
30 60 90 120 150 180 210 240 270 300
QUANTITY (Millions of pounds)
Demand
10
Supply
until
?
The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry is
un.
in the long
![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F04f13172-80bc-4f0b-849e-bbea6319380f%2F69b216d6-0551-4646-9798-c4b846b28df5%2Fwfr29nb_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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
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