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. * MindTap - Cenga xb My Questions |b: x C Consider The Cor x2 10 Steps to Buildi xy! perfect competiti xx +Black Box Stocks XAT&TA ng.cengage.com/static/nb/ui/evo/index.html?deploymentld=59828118170010561930692029148&elSBN=9780357133606&id=1270090816&snapshotld=2556323&E Apps M GmailYouTube A Maps A clickserve.dartsearc.E Reading list«* CENGAGE MINDTAPQ Search this courseLove vA My HomeHomework (Ch 14)CoursesO Catalog and Study Tools10A-ZEE Rental OptionsSupplyDemand- College Success Tips8O7Career Success TipsSupply? HelpO Give FeedbackDemandbongo10 30 6090120150180210240270300QUANTITY (Millions of pounds)In the long run, some firms will respond byuntil11:40 AMP Type here to search100%44°F12/8/2021PRICE (Dollars per pound)x ... * MindTap - Cenga xb My Questions |b: x C Consider The Cor x2 10 Steps to Buildi xy! perfect competiti xBlack Box Stocks Xx +AT&TA ng.cengage.com/static/nb/ui/evo/index.html?deploymentld=59828118170010561930692029148&elSBN=9780357133606&id=1270090816&snapshotld=2556323&E Apps M GmailYouTube A Maps A clickserve.dartsearc.E Reading list«* CENGAGE MINDTAPQ Search this courseLove vA My HomeHomework (Ch 14)CoursesO Catalog and Study Tools10A-ZEE Rental OptionsSupplyDemand8P College Success TipsCareer Success TipsSupply? HelpO Give Feedback3Demand21bongo30 60 90120150180210240270300QUANTITY (Millions of pounds)The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry isin the longrun.11:42 AMP Type here to searchL100%44°F12/8/2021PRICE (Dollars per pound)x ...

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Answered: Suppose that the shrimp industry is in…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

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.

* MindTap - Cenga x
b My Questions |b: x C Consider The Cor x
2 10 Steps to Buildi x
y! perfect competiti x
x +
Black Box Stocks 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
- College Success Tips
8
O
7
Career Success Tips
Supply
? Help
O Give Feedback
Demand
bongo
1
0 30 60
90
120
150
180
210
240
270
300
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 ...

* 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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