Suppose that the shrimp industry is in long-run equilibrium at a price of $5 per pound of shrimp and a quantity of 150 million pounds per year. Suppose the Surgeon General issues a report saying that eating shrimp is bad for your health. The Surgeon General’s report will cause consumers to demand shrimp 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 Surgeon General’s report. 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. The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry is in the long run.
Suppose that the shrimp industry is in long-run equilibrium at a price of $5 per pound of shrimp and a quantity of 150 million pounds per year. Suppose the Surgeon General issues a report saying that eating shrimp is bad for your health. The Surgeon General’s report will cause consumers to demand shrimp 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 Surgeon General’s report. 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. The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry is in the long run.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Suppose that the shrimp industry is in long-run equilibrium at a price of $5 per pound of shrimp and a quantity of 150 million pounds per year. Suppose the Surgeon General issues a report saying that eating shrimp is bad for your health.
The Surgeon General’s report will cause consumers to demand shrimp 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 Surgeon General’s report.
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.
The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry is in the long run.
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Demand
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0 30 60
90
120
150
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QUANTITY (Millions of pounds)
In the long run, some firms will respond by
until
11:40 AM
P Type here to search
100%
44°F
12/8/2021
PRICE (Dollars per pound)
x ...
Transcribed Image Text:* MindTap - Cenga x
b My Questions |b: x C Consider The Cor x
2 10 Steps to Buildi x
y! perfect competiti x
Black Box Stocks X
x +
AT&T
A ng.cengage.com/static/nb/ui/evo/index.html?deploymentld=59828118170010561930692029148&elSBN=9780357133606&id=1270090816&snapshotld=2556323&
E Apps M Gmail
YouTube A Maps A clickserve.dartsearc.
E Reading list
«
* CENGAGE MINDTAP
Q Search this course
Love v
A My Home
Homework (Ch 14)
Courses
O Catalog and Study Tools
10
A-Z
EE Rental Options
Supply
Demand
8
P College Success Tips
Career Success Tips
Supply
? Help
O Give Feedback
3
Demand
2
1
bongo
30 60 90
120
150
180
210
240
270
300
QUANTITY (Millions of pounds)
The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry is
in the long
run.
11:42 AM
P Type here to search
L
100%
44°F
12/8/2021
PRICE (Dollars per pound)
x ...
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