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 400 million pounds per year. Suppo: the Surgeon General issues a report saying that eating turkey is bad for your health. The Surgeon General's report 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 graph to illustrate these short-run effects of the Surgeon General's report. 10 9 Supply 8 PRICE (Dollars per pound) 2 1 0 D2 D. 1 80 160 240 320 400 480 560 640 720 800 QUANTITY (Millions of pounds) 0 In the long run, some firms will respond by 中翼中国 Demand Supply until
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 400 million pounds per year. Suppo: the Surgeon General issues a report saying that eating turkey is bad for your health. The Surgeon General's report 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 graph to illustrate these short-run effects of the Surgeon General's report. 10 9 Supply 8 PRICE (Dollars per pound) 2 1 0 D2 D. 1 80 160 240 320 400 480 560 640 720 800 QUANTITY (Millions of pounds) 0 In the long run, some firms will respond by 中翼中国 Demand Supply until
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter5: Elastic And Its Application
Section: Chapter Questions
Problem 3PA: Suppose the price elasticity of demand for heating oil is 02. in the short run and 0.7 in the long...
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