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 help to prevent 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 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 (Dolars per pound) 10 B Supply Demand B 7 10 2 1 + 0 0 30 Demand 90 120 150 180 210 240 270 300 QUANTITY (Millions of pounds) In the long run, some firms will respond by Supply until
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 help to prevent 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 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 (Dolars per pound) 10 B Supply Demand B 7 10 2 1 + 0 0 30 Demand 90 120 150 180 210 240 270 300 QUANTITY (Millions of pounds) In the long run, some firms will respond by Supply until
Chapter6: Elasticities
Section: Chapter Questions
Problem 19P
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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 help to prevent 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
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 (Dolars per pound)
10
B
Supply
Demand
B
7
10
2
1
+
0
0
30
Demand
90 120 150 180 210 240 270 300
QUANTITY (Millions of pounds)
In the long run, some firms will respond by
Supply
until
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