Suppose that the pertectly competitive tuna industry is in long-run equilibrium at a price of $3 per can of tuna and a quantity of 600 million cans per year. Suppose the Surgeon General issues a report saying that eating tuna is bad for your health. The Surgeon General's report will cause consumers to demand tuna at every price. In the short run, firms will respond by Shift the supply curve, the demand curve, or both on the following diagram to illustrate these short-run effects of the Surgeon General's announcement. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. (2) Supply Demand Supply Demand PRICE (Dollars per can)

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Suppose that the perfectly competitive tuna industry is in long-run equilibrium at a price of $3 per can of tuna and a quantity of 600 million cans per
year. Suppose the Surgeon General issues a report saying that eating tuna is bad for your health.
The Surgeon General's report will cause consumers to demand
tuna at every price. In the short run, firms will respond by
Shift the supply curve, the demand currve, or both on the following diagram to illustrate these short-run effects of the Surgeon General's
announcement.
Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back
to its original position, just drag it a little farther.
(?
6.
Supply
Demand
Supply
Demand
4,
2.
PRICE (Dollars per can)
Transcribed Image Text:Suppose that the perfectly competitive tuna industry is in long-run equilibrium at a price of $3 per can of tuna and a quantity of 600 million cans per year. Suppose the Surgeon General issues a report saying that eating tuna is bad for your health. The Surgeon General's report will cause consumers to demand tuna at every price. In the short run, firms will respond by Shift the supply curve, the demand currve, or both on the following diagram to illustrate these short-run effects of the Surgeon General's announcement. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. (? 6. Supply Demand Supply Demand 4, 2. PRICE (Dollars per can)
In the long run, some firms will respond by
until
Shift the supply curve, the demand curve, or both on the following diagram to illustrate both the short-run effects of the Surgeon General's
announcement and the new long-run equilibrium after firms and consumers finish adjusting to the Surgeon General's announcement.
?)
6.
Supply
Demand
Supply
Demand
200
400
600
800
1000
1200
QUANTITY (Millions of cans)
PRICE (Dollars per can)
3.
Transcribed Image Text:In the long run, some firms will respond by until Shift the supply curve, the demand curve, or both on the following diagram to illustrate both the short-run effects of the Surgeon General's announcement and the new long-run equilibrium after firms and consumers finish adjusting to the Surgeon General's announcement. ?) 6. Supply Demand Supply Demand 200 400 600 800 1000 1200 QUANTITY (Millions of cans) PRICE (Dollars per can) 3.
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