In the long run, some firms will respond byuntilShift the demand curve, the supply curve, or both on the following graph to illustrate both the short-run effects of the CDC's announcement and thenew long-run equilibrium after firms and consumers finish adjusting to the news.109.SupplyDemand7Supply4Demand21306090120150180210240270300QUANTITY (Millions of cans)The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry isin the longrun.PRICE (Dollars per can) Suppose that the tuna industry is in long-run equilibrium at a price of $5 per can of tuna and a quantity of 150 million cans per year. Suppose that theCenters for Disease Control (CDC) announces that a chemical found in tuna helps prevent many viral infections from spreading.The CDC's announcement will cause consumers to demandtuna at every price. In the short run, firms will respond byShift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of the CDC's announcement.109.SupplyDemand7Supply43Demand21306090120150180210240270300QUANTITY (Millions of cans)PRICE (Dollars per can)

Equilibrium price= $5 Equilibrium quantity= 150

In the Tong run, some firms wili respond by Shift the demand curve, the supply curve, or both on the following graph to illustrate both the short-run effects of the CDC's announcement and the new long-run equilibrium after firms and consumers finish adjusting to the news. 10 9 Supply Demand 8 7 Supply Demand 30 60 90 120 150 180 210 240 270 300 QUANTITY (Millions of cans) The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry is in the long PRICE (Dollars per can)

In the Tong run, some firms wili respond by Shift the demand curve, the supply curve, or both on the following graph to illustrate both the short-run effects of the CDC's announcement and the new long-run equilibrium after firms and consumers finish adjusting to the news. 10 9 Supply Demand 8 7 Supply Demand 30 60 90 120 150 180 210 240 270 300 QUANTITY (Millions of cans) The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry is in the long PRICE (Dollars per can)

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

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