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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 50 million pounds per year. Suppose that WebMD claims that the bacteria found in shrimp will decrease your expected life span by 5 years. WebMD's claim will cause consumers to demand firms will respond by Shift the demand curve, the supply curve, or both on the following diagram to illustrate these short-run effects of WebMD's claim. PRICE (Dollars per pound) 10 9 0 10 20 30 40 50 60 QUANTITY (Millions of pounds) 10 Supply 9 Demand In the long run, some firms will respond by 70 80 90 100 Demand Supply 1 0 Supply Shift the demand curve, the supply curve, or both on the following diagram to illustrate both the short-run effects of WebMD's claim and the new long-run equilibrium after firms and consumers finish adjusting to the news. shrimp at every price. In the short run, Demand until (?)

Suppose that the shrimp industry is in long-run equilibrium at a price of $5 per pound of shrimp and a quantity of 50 million pounds per year. Suppose that WebMD claims that the bacteria found in shrimp will decrease your expected life span by 5 years. WebMD's claim will cause consumers to demand firms will respond by Shift the demand curve, the supply curve, or both on the following diagram to illustrate these short-run effects of WebMD's claim. PRICE (Dollars per pound) 10 9 0 10 20 30 40 50 60 QUANTITY (Millions of pounds) 10 Supply 9 Demand In the long run, some firms will respond by 70 80 90 100 Demand Supply 1 0 Supply Shift the demand curve, the supply curve, or both on the following diagram to illustrate both the short-run effects of WebMD's claim and the new long-run equilibrium after firms and consumers finish adjusting to the news. shrimp at every price. In the short run, Demand until (?)

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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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 50 million pounds per year. Suppose that WebMD claims that the bacteria found in shrimp will decrease your expected life span by 5 years. WebMD's claim will cause consumers to demand firms will respond by Shift the demand curve, the supply curve, or both on the following diagram to illustrate these short-run effects of WebMD's claim. PRICE (Dollars per pound) 10 7 6 10 0 9 10 20 30 40 50 60 QUANTITY (Millions of pounds) B Supply Demand In the long run, some firms will respond by 70 80 90 100 O Supply Demand -O Supply Shift the demand curve, the supply curve, or both on the following diagram to illustrate both the short-run effects of WebMD's claim and the new long-run equilibrium after firms and consumers finish adjusting to the news. shrimp at every price. In the short run, -O Demand ? until (?)
Transcribed Image Text:Suppose that the shrimp industry is in long-run equilibrium at a price of $5 per pound of shrimp and a quantity of 50 million pounds per year. Suppose that WebMD claims that the bacteria found in shrimp will decrease your expected life span by 5 years. WebMD's claim will cause consumers to demand firms will respond by Shift the demand curve, the supply curve, or both on the following diagram to illustrate these short-run effects of WebMD's claim. PRICE (Dollars per pound) 10 7 6 10 0 9 10 20 30 40 50 60 QUANTITY (Millions of pounds) B Supply Demand In the long run, some firms will respond by 70 80 90 100 O Supply Demand -O Supply Shift the demand curve, the supply curve, or both on the following diagram to illustrate both the short-run effects of WebMD's claim and the new long-run equilibrium after firms and consumers finish adjusting to the news. shrimp at every price. In the short run, -O Demand ? until (?)
In the long run, some firms will respond by Shift the demand curve, the supply curve, or both on the following diagram to illustrate both the short-run effects of WebMD's claim and the new long-run equilibrium after firms and consumers finish adjusting to the news. PRICE (Dollars per pound) 10 9 7 0 0 10 20 30 40 50 60 QUANTITY (Millions of pounds) Supply Demand 70 10 90 100 Demand -- until Supply The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry is in the long run.
Transcribed Image Text:In the long run, some firms will respond by Shift the demand curve, the supply curve, or both on the following diagram to illustrate both the short-run effects of WebMD's claim and the new long-run equilibrium after firms and consumers finish adjusting to the news. PRICE (Dollars per pound) 10 9 7 0 0 10 20 30 40 50 60 QUANTITY (Millions of pounds) Supply Demand 70 10 90 100 Demand -- until Supply 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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