Suppose that the tuna industry is in long-run equilibrium at a price of $5 per can of tuna and a quantity of 500 million cans per year. Suppose thatWebMD claims that the bacteria found in tuna will decrease your expected lifespan by 2 years.WebMD's claim will cause consumers to demandShift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of WebMD's claim.?PRICE (Dollars per can)10980Otuna at every price. In the short run, firms will respond by100 200SupplyDemand300 400 500 600 700 800QUANTITY (Millions of cans)000 1000Demand1Supply In the long run, some firms will respond byShift the demand curve, the supply curve, or both on the following graph 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 can)10910SupplyDemand0 100 200 300 400 500 600 700 800 900 1000QUANTITY (Millions of cans)Demand.untilSupplyThe new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry isrun.in the lang

An economic equilibrium is said to exist when all economic forces are in harmony. Economic…

Suppose that the tuna industry is in long-run equilibrium at a price of $5 per can of tuna and a quantity of 500 million cans per year. Suppose that WebMD claims that the bacteria found in tuna will decrease your expected lifespan by 2 years. WebMD's claim will cause consumers to demand tuna 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 WebMD's claim. ? PRICE (Dollars per can) 10 9 8 0 O 100 200 300 400 500 600 Supply Demand 700 800 000 1000 Demand 10 Supply

Suppose that the tuna industry is in long-run equilibrium at a price of $5 per can of tuna and a quantity of 500 million cans per year. Suppose that WebMD claims that the bacteria found in tuna will decrease your expected lifespan by 2 years. WebMD's claim will cause consumers to demand tuna 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 WebMD's claim. ? PRICE (Dollars per can) 10 9 8 0 O 100 200 300 400 500 600 Supply Demand 700 800 000 1000 Demand 10 Supply

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter4: Demand, Supply, And Market Equilibrium

Section: Chapter Questions

Problem 7P

See similar textbooks

Similar questions

Macmillan Learning John and Michael are the only consumers in a town that is planning on putting on a fireworks display. The graph illustrates John's and Michael's demand curves for a fireworks display. Based on the information given in the graph, manipulate the movable demand curve to reflect the overall demand for the fireworks display. Cost ($) 4 3 2 5 12 11 10 9 287 John's demand 6 Michael's demand 1 0 0.0 1.0 2.0 Quantity Demand 3.0 What kind of good is a fireworks display? O quasi-public good public good private good common resource
I need help with finding equilibrium point on this question? a retailer will buy 45 radios fom a wholesaler if the price is $10 each but only 20 if the price is $60. the wholesaler will supply 35 radios at $30 each and 70 radios at $50 each. assuming the supply and demand functions are linear, find the market equilibrium point. I started with using the equation for a line and moved on to demand equation, how do I find out the supply functions? Do I plug in the supply number as (P1,Q1) and (P2,Q2) and if they come out equal is that the equilibrium point or is there something I am missing?
Before economic reforms were implemented in the countries of Eastern Europe, regulation held the price of bread substantially below equilibrium. When reforms were implemented, prices were deregulated and they rose dramatically. As a result, the quantity demanded for bread dramatically fell and the quantity supplied for supplied rose sharply. Change in demand? Change in supply? Change in market equilibrium price? Change in market equilibrium quantity? Graph?
1. Consider the market for Netflix Subscriptions. Show graphically and explain using economic intuition, what happens to the market price and quantity in each of the following: a) A popular show “Suits” gets taken out of the platform. b) The price of Hulu subscriptions doubles. c) After the effects of a) and b), you see that the price of Netflix subscriptions increases. d) After the effects of a), what will happen if Netflix doesn’t lower their prices. For each of the following situations, decide whether Shane has diminishing marginal utility. Explain. a) The more economics classes Shane takes, the more he enjoys the subject. And the more classes he takes, the easier each one gets, making him enjoy each additional class even more than the one before. b) Shane likes loud music. In fact, according to him, “the louder, the better.” Each time he turns the volume up a notch, he adds 10 utils to his total utility. c) Shane enjoys watching the show “Stranger Things”. He…
1. Consider the market for Netflix Subscriptions. Show graphically and explain using economic intuition, what happens to the market price and quantity in each of the following: a) A popular show “Suits” gets taken out of the platform. b) The price of Hulu subscriptions doubles. c) After the effects of a) and b), you see that the price of Netflix subscriptions increases. d) After the effects of a), what will happen if Netflix doesn’t lower their prices. For each of the following situations, decide whether Shane has diminishing marginal utility. Explain. a) The more economics classes Shane takes, the more he enjoys the subject. And the more classes he takes, the easier each one gets, making him enjoy each additional class even more than the one before. b) Shane likes loud music. In fact, according to him, “the louder, the better.” Each time he turns the volume up a notch, he adds 10 utils to his total utility. c) Shane enjoys watching the show “Stranger Things”. He…
TIMBER CRUNCH The demand and the supply of timber for construction in Australia are given by QD =120 - 20P QS = 40P We assume the market is perfectly competitive. 1) Calculate the price elasticity of demand and price elasticity of supply at the equilibrium price and quantity. 2) Due to Covid lockdowns, interstate transportation becomes difficult. Meanwhile, construction work is viewed as essential and therefore not affected by lockdowns. Use a demand and supply graph to explain how the lockdowns affect the equilibrium price and quantity. 3) Bushfires are more likely to happen in summer. If a bushfire happens again in the coming summer, how would you expect it to affect the timber market?
Suppose that there are two companies that produce mobile phones: Brand A and Brand B. Explain how each of the following events will affect the market for Brand A phones by using supply and demand diagrams (mention the changes in equilibrium price and quantity): a) Price of Brand B phones increased. b) Brand A's factory's production capacity dropped because of a shortage in raw materials supplies. c) Brand A has developed a new technology that allows to assemble the phone's components in a cheaper way.
Draw a graph that indicates what happens in the market for hybrid cars when the price of gasoline increases from $2.50 to $5.00 per gallon. Answer the following questions: a) Does equilibrium output rise or fall? b) Does equilibrium price rise or fall? c) Suppose the supply of hybrid cars is perfectly inelastic. Draw a new graph and explain if and how the elasticity of supply changes your answers to parts “a” and “b”. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Graph the demand for wheat and the supply of wheat. Be sure to label the axes of your graph correctly. Label equilibrium price P and equilibrium Quantity
Only one thing can cause movement along a product’s demand curve --- that is, cause a change in quantity demanded for that product --- and that’s a change in that product’s price. On the other hand, there are five key variables that can cause a product’s demand curve to shift to the left or right --- that is, lead to a change in demand. Coca-Cola is experiencing shifts in the U.S. demand curve for its famous cola soft drink, as the huge post-World War II “Baby Boom” generation has aged beyond their prime soft drink consumption years, and as the smaller generations behind the Baby Boomers have been buying relatively more energy drinks, water, juice, and tea, and relatively less soda than previous generations. What two key variables are affecting demand for Coca-Cola in the U.S., and in which direction are these variables shifting the demand curve for Coke?
Suppose there is a shortage of supply of goods from China to Australia due to Covid-19 disruptions. What will be the impact of this on catering business in Darwin? Explain using demand and supply diagram.
Consider a market for solar energy panels as shown in the given graph. Due to a major breakthrough in terms of technological advancement in its manufacturing, the cost of production has gone down drastically. This causes the manufacturers of solar energy panels to shift their supply curve. Show the impact of this technological advancement on the supply curve of solar energy panels. Using the Line drawing tool, draw the new supply curve of solar energy panels. Carefully follow the instructions above and only draw the required object. What happens to the equilibrium price and quantity demanded after the supply curve of solar energy panels shifts? O A. Both price and quantity demanded increase. O B. Both price and quantity demanded decrease. O C. Price increases and quantity demanded decreases. O D. Price decreases and quantity demanded increases. Click the graph choose a tool in the palette and follow the instructions to create your graph Price of solar panels Graph Quantity of solar…