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 100 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 tempeh at every price. In the short run, firms will respond by producing the same amount of 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. (?) 10 9 4 2 1 0 0 20 Supply In the long run, some firms will respond by D₁ 40 60 80 100 120 140 100 100 200 QUANTITY (Millions of pounds) consumer demand returns to its original level 10 Demand Supply exiting the industry until The viral video is expected to cause consumers to demand less tempeh at every price. In the short run, firms will respond br by producing the same amount of tempeh and running at a loss producing more tempeh and earning positive profit producing the same amount of tempeh and earning positive profit producing less tempeh and running at a loss. exiting the industry entering the industry producing the same amount of tempeh and running at a loss □ Q Q In the long run, some firms will respond by consumer demand returns to it Demand Screen Shot 2023-02-21 at 2.18.23 PM 10 .. I✓QQ Û an une rong run, ses will responu by aph to illustrate these short-run effects of the viral video. producing more tempeh and running at a loss entering the industry Shift the demand curve, the supply curve, or run equilibrium after firms and consumers fir producing less tempeh and earning positive profit exiting the industry exiting the industry consumer demand returns to its original level Screen Shot 2023-02-21 at 2.18.29 PM producing less tempeh and running at a loss producing more tempeh and earning positive profit (? tempeh populations grow large enough to support more firms new technologies are discovered that lower costs consumer demand returns to its original level. each firm in the industry is once again earning zero profit Q Search Q Search exiung une muustry 9 graph to illustrate both the sho news. (?) rt-run effects of until O
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 100 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 tempeh at every price. In the short run, firms will respond by producing the same amount of 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. (?) 10 9 4 2 1 0 0 20 Supply In the long run, some firms will respond by D₁ 40 60 80 100 120 140 100 100 200 QUANTITY (Millions of pounds) consumer demand returns to its original level 10 Demand Supply exiting the industry until The viral video is expected to cause consumers to demand less tempeh at every price. In the short run, firms will respond br by producing the same amount of tempeh and running at a loss producing more tempeh and earning positive profit producing the same amount of tempeh and earning positive profit producing less tempeh and running at a loss. exiting the industry entering the industry producing the same amount of tempeh and running at a loss □ Q Q In the long run, some firms will respond by consumer demand returns to it Demand Screen Shot 2023-02-21 at 2.18.23 PM 10 .. I✓QQ Û an une rong run, ses will responu by aph to illustrate these short-run effects of the viral video. producing more tempeh and running at a loss entering the industry Shift the demand curve, the supply curve, or run equilibrium after firms and consumers fir producing less tempeh and earning positive profit exiting the industry exiting the industry consumer demand returns to its original level Screen Shot 2023-02-21 at 2.18.29 PM producing less tempeh and running at a loss producing more tempeh and earning positive profit (? tempeh populations grow large enough to support more firms new technologies are discovered that lower costs consumer demand returns to its original level. each firm in the industry is once again earning zero profit Q Search Q Search exiung une muustry 9 graph to illustrate both the sho news. (?) rt-run effects of until O
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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