Suppose that the shrimp industry is in long-run equilibrium at a price of $5 per pound of shrimp and a quantity of 250 million pounds per year. Suppose the Surgeon General issues a report saying that eating shrimp is good for your health. The Surgeon General's report will cause consumers to demand shrimp at every price. In the short run, firms vill respond by Shift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of the Surgeon General's report. 10 Supply Demand 7 Supply Demand 1 0 50 100 150 200 250 300 350 400 450 500 QUANTITY (Millions of pounds) In the long run, some firms will respond by. until Shift the demand curve, the supply curve, or both on the following graph to illustrate both the short-run effects of the Surgeon General's report and the new long-run equilibrium after firms and consumers finish adjusting to the news. PRICE (Dollars per pound)

Suppose that the shrimp industry is in long-run equilibrium at a price of $5 per pound of shrimp and a quantity of 250 million pounds per year. Suppose the Surgeon General issues a report saying that eating shrimp is good for your health. The Surgeon General's report will cause consumers to demand shrimp at every price. In the short run, firms vill respond by Shift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of the Surgeon General's report. 10 Supply Demand 7 Supply Demand 1 0 50 100 150 200 250 300 350 400 450 500 QUANTITY (Millions of pounds) In the long run, some firms will respond by. until Shift the demand curve, the supply curve, or both on the following graph to illustrate both the short-run effects of the Surgeon General's report and the new long-run equilibrium after firms and consumers finish adjusting to the news. PRICE (Dollars per pound)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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F3.
What is special about a purely competitive market?
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