Suppose that the ziratoid industry is initially operating in long-run equilibrium at a price level of $6 per pound of ziratoid and quantity of 108 million pounds per year. Suppose a leading foodie video blogger raises awareness for a scholarly article that links ziratoid consumption to premature hair loss and unhealthy skin. The viral video is expected to cause consumers to demand ziratoid 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 the viral video. ? PRICE (Dollars per pound) 12 11 Supply 10 O | } Demand 2 1 0 18 36 54 Demand 72 90 108 120 144 162 180 198 216 QUANTITY (Millions of pounds) In the long run, some firms will respond by Supply until

Suppose that the ziratoid industry is initially operating in long-run equilibrium at a price level of $6 per pound of ziratoid and quantity of 108 million pounds per year. Suppose a leading foodie video blogger raises awareness for a scholarly article that links ziratoid consumption to premature hair loss and unhealthy skin. The viral video is expected to cause consumers to demand ziratoid 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 the viral video. ? PRICE (Dollars per pound) 12 11 Supply 10 O | } Demand 2 1 0 18 36 54 Demand 72 90 108 120 144 162 180 198 216 QUANTITY (Millions of pounds) In the long run, some firms will respond by Supply until

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter10: Price-searcher Markets With Low Entry Barriers

Section: Chapter Questions

Problem 17CQ

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