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Suppose that the tofu industry is initially operating in long-run equilibrium at a price level of $5 per block of tofu and quantity of 150 million blocks per year. Suppose a top medical journal publishes research that animal-alternative protein sources such as tofu could increase your expected lifespan by 4 years. The publication is expected to cause consumers to demand tofu at every price. In the short run, firms will respond by producing the same amount of tofu and earning positive profit exiting the industry producing the same amount of tofu and running at a loss. producing more tofu and earning positive profit graph to illustrate these short-run effects of the publication. (?

Suppose that the tofu industry is initially operating in long-run equilibrium at a price level of $5 per block of tofu and quantity of 150 million blocks per year. Suppose a top medical journal publishes research that animal-alternative protein sources such as tofu could increase your expected lifespan by 4 years. The publication is expected to cause consumers to demand tofu at every price. In the short run, firms will respond by producing the same amount of tofu and earning positive profit exiting the industry producing the same amount of tofu and running at a loss. producing more tofu and earning positive profit graph to illustrate these short-run effects of the publication. (?

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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Suppose that the tofu industry is initially operating in long-run equilibrium at a price level of $5 per block of tofu and quantity of 150 million blocks per year. Suppose a top medical journal publishes research that animal-alternative protein sources such as tofu could increase your expected lifespan by 4 years. The publication is expected to cause consumers to demand producing the same amount of tofu and earning positive profit exiting the industry producing the same amount of tofu and running at a loss producing more tofu and earning positive profit producing less tofu and running at a loss. entering the industry PRICE (Dollars per block) 8 1 0 0 30 60 Demand 90 120 150 180 210 240 270 300 QUANTITY (Millions of blocks) In the long run, some firms will respond by tofu at every price. In the short run, firms will respond by graph to illustrate these short-run effects of the publication. O Demand Supply (?) + until
Transcribed Image Text:Suppose that the tofu industry is initially operating in long-run equilibrium at a price level of $5 per block of tofu and quantity of 150 million blocks per year. Suppose a top medical journal publishes research that animal-alternative protein sources such as tofu could increase your expected lifespan by 4 years. The publication is expected to cause consumers to demand producing the same amount of tofu and earning positive profit exiting the industry producing the same amount of tofu and running at a loss producing more tofu and earning positive profit producing less tofu and running at a loss. entering the industry PRICE (Dollars per block) 8 1 0 0 30 60 Demand 90 120 150 180 210 240 270 300 QUANTITY (Millions of blocks) In the long run, some firms will respond by tofu at every price. In the short run, firms will respond by graph to illustrate these short-run effects of the publication. O Demand Supply (?) + until
In the long run, some firms will respond by Shift the demand curve, the supply curve, or run equilibrium after firms and consumers fir PRICE (Dollars per block) 10 9 8 3 2 1 0 0 30 60 producing less tofu and earning positive profit exiting the industry producing more tofu and running at a loss producing less tofu and running at a loss entering the industry producing more tofu and earning positive profit Supply Demand 90 120 150 180 210 240 270 300 QUANTITY (Millions of blocks) Demand -O- Supply until + short-run effects of the publication and the new long- The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry is run. in the long
Transcribed Image Text:In the long run, some firms will respond by Shift the demand curve, the supply curve, or run equilibrium after firms and consumers fir PRICE (Dollars per block) 10 9 8 3 2 1 0 0 30 60 producing less tofu and earning positive profit exiting the industry producing more tofu and running at a loss producing less tofu and running at a loss entering the industry producing more tofu and earning positive profit Supply Demand 90 120 150 180 210 240 270 300 QUANTITY (Millions of blocks) Demand -O- Supply until + short-run effects of the publication and the new long- The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry is run. in the long
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