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Suppose that the tempeh industry is initially operating in long-run equilibrium at a price level of $5 per pound of tempeh and quantity of 75 million pounds per year. Suppose a leading foodie video blogger raises awareness for a scholarly article that links tempeh consumption to premature hair la and unhealthy skin. The viral video is expected to cause consumers to demand less producing less tempeh and running at a loss Shift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of the viral video. ? PRICE (Dollars per pound) 5 2 Supply tempeh at every price. In the short run, firms will respond by Demand Demand 1 Supply Adap

Suppose that the tempeh industry is initially operating in long-run equilibrium at a price level of $5 per pound of tempeh and quantity of 75 million pounds per year. Suppose a leading foodie video blogger raises awareness for a scholarly article that links tempeh consumption to premature hair la and unhealthy skin. The viral video is expected to cause consumers to demand less producing less tempeh and running at a loss Shift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of the viral video. ? PRICE (Dollars per pound) 5 2 Supply tempeh at every price. In the short run, firms will respond by Demand Demand 1 Supply Adap

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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short run ans long run effects of shift demand

Suppose that the tempeh industry is initially operating in long-run equilibrium at a price level of $5 per pound of tempeh and quantity of 75 million pounds per year. Suppose a leading foodie video blogger raises awareness for a scholarly article that links tempeh consumption to premature hair loss and unhealthy skin. The viral video is expected to cause consumers to demand less producing less tempeh and running at a loss Shift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of the viral video. ? PRICE (Dollars per pound) 10 9 8 7 2 1 0 0 15 Supply Demand tempeh at every price. In the short run, firms will respond by 30 45 60 75 90 105 120 135 150 QUANTITY (Millions of pounds) Demand P Supply Adaptive T
Transcribed Image Text:Suppose that the tempeh industry is initially operating in long-run equilibrium at a price level of $5 per pound of tempeh and quantity of 75 million pounds per year. Suppose a leading foodie video blogger raises awareness for a scholarly article that links tempeh consumption to premature hair loss and unhealthy skin. The viral video is expected to cause consumers to demand less producing less tempeh and running at a loss Shift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of the viral video. ? PRICE (Dollars per pound) 10 9 8 7 2 1 0 0 15 Supply Demand tempeh at every price. In the short run, firms will respond by 30 45 60 75 90 105 120 135 150 QUANTITY (Millions of pounds) Demand P Supply Adaptive T
In the long run, some firms will respond exiting the industry by Shift the demand curve, the supply curve, or both on the following graph to illustrate both the short-run effects of the viral video and the new long- run equilibrium after firms and consumers finish adjusting to the news. PRICE (Dollars per pound) 10 9 B 1 0 0 15 Supply Demand until 30 45 60 75 90 105 120 135 150 QUANTITY (Millions of pounds) Demand 11 Supply ? The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry is Adaptive Test Prep in the long
Transcribed Image Text:In the long run, some firms will respond exiting the industry by Shift the demand curve, the supply curve, or both on the following graph to illustrate both the short-run effects of the viral video and the new long- run equilibrium after firms and consumers finish adjusting to the news. PRICE (Dollars per pound) 10 9 B 1 0 0 15 Supply Demand until 30 45 60 75 90 105 120 135 150 QUANTITY (Millions of pounds) Demand 11 Supply ? The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry is Adaptive Test Prep in the long
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