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 175 million pounds per year. Suppose a top medical journal publishes research that animal-alternative protein sources such as Jackfruit could increase your expected lifespan by 4 years. The publication 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 publication. PRICE (Dolars per pound) In the long run, some firms will respond by PRICE (Dolars per pound) 10 run. 9 B 7 6 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. 1 0 0 Supply 105 140 175 210 245 2.80 315 350 QUANTITY (Millions of pounds) Demand 1 1 1 1 Supply Demand Demand 35 70 105 140 175 210 245 280 315 350 QUANTITY (Millions of pounds) + Supply Demand (?) Supply until (?) The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry is 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 175 million pounds per year. Suppose a top medical journal publishes research that animal-alternative protein sources such as Jackfruit could increase your expected lifespan by 4 years. The publication 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 publication. PRICE (Dolars per pound) In the long run, some firms will respond by PRICE (Dolars per pound) 10 run. 9 B 7 6 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. 1 0 0 Supply 105 140 175 210 245 2.80 315 350 QUANTITY (Millions of pounds) Demand 1 1 1 1 Supply Demand Demand 35 70 105 140 175 210 245 280 315 350 QUANTITY (Millions of pounds) + Supply Demand (?) Supply until (?) The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry is in the long
Chapter5: Elasticity Of Demand And Supply
Section: Chapter Questions
Problem 1.1P: (Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of...
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8. Short-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 175 million
pounds per year. Suppose a top medical journal publishes research that animal-alternative protein sources such as Jackfruit could increase your
expected lifespan by 4 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.
(punod jad sig
10
PRICE (Dolars per pound)
In the long run, some firms will respond by
10
a
8
T
6
5
3
2
Supply
EX
Demand
Shift the demand curve, the supply curve, or both on the following graph to Tlustrate both the short-run effects of the publication and the new long-
run equilibrium after firms and consumers finish adjusting to the news
1
915
0
005 140
QUANTITY Mllions of pounds)
35
280 315 360
Demand
Jackfruit at every price. In the short run, firms will respond by
105 140
QUANTITY (Millions of pounds)
1210 245 280 315 350
O
Dersand
1
Supply
0
Demand
?
Supply
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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