8. Short-run and long-run effects of a shift in demand Suppose that the turkey i

Question

8. Short-run and long-run effects of a shift in demand Suppose that the turkey industry is in long-run equilibrium at a price of $5 per pound of turkey and a quantity of 350 million pounds per year Suppose that WebMD claims that a protein found in turkey will increase your expected life span by 3 years WebMD's claim will cause consumers to demand turkey at every price. In the short run, firms will respond by Shift the demand curve, the supply curve, or both on the following diagram to illustrate these short-run effects of WebMD's claim 10 Supp Demand Supply 5 and 0 70 140 210 280 350 420 490 560 630 700 QUANTITY (Milions of pounds) 2 1 Ses

Explanation / Answer

Answer to blank 1: more

Answer to blank 2: producing more turkey and earning a positive profit

Answer to blank 3: entering the turkey industry

Answer to blank 4: each firm in the industry is once again earning zero profit

Answer to blank 5: upward sloping

Related Questions

Navigate

• Browse (All)
• Browse 8
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.