Assume that the market for pasta is in long-run equilibrium and that the pasta industry is a constant-cost industry. Explain with a graph and words what will happen to the price and quantity in the market when the demand for pasta decreases.
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- Suppose that the chicken industry is in long-run equilibrium at a price of $5 per pound of chicken and a quantity of 250 million pounds per year. Suppose that the Centers for Disease Control (CDC) announces that a chemical found in chicken is causing bacterial infections to spread around the world. The CDC's announcement will cause consumers to demand Shift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of the CDC's announcement. PRICE (Dollars per pound) 78°F Sunny 10 9 8 Supply chicken at every price. In the short run, firms will respond by Demand F5 H Demand Supply O J (?) [+ & F9 O F10 F11 F12 FnThe following graph shows the long-run supply curve for apricots. Place the orange line (square symbol) on the following graph to show the most likely short-run supply curve for apricots. (Note: Place the points of the line either on F and W or on F and N.) 12 10 W Short-Run Supply 8 F Long-Run Supply 2 4 8 10 12 QUANTITY (Thousands of pounds of apricots) PRICE (Dollars per pound)Which of the following will not cause the demand for product K to change?
- The following graph shows the short-run supply curve for apricots. Place the orange line (square symbol) on the following graph to show the most likely long-run supply curve for apricots. (Note: Place the points of the line either on H and K or on H and N.) PRICE (Dollars per pound) 12 10 0 D Short-Run Supply 2 10 QUANTITY (Thousands of pounds of apricots) 12 Long-Run Supply ?Suppose that the turkey industry is in long-run equilibrium at a price of $5 per pound of turkey and a quantity of 150 million pounds per year. Suppose that WebMD claims that the bacteria found in turkey will decrease your expected life span by 4 years. WebMD's claim will cause consumers to demand Shift the demand curve, the supply curve, or both on the following diagram to illustrate these short-run effects of WebMD's claim. PRICE (Dollars per pound) 10 9 8 3 2 1 0 0 30 turkey at every price. In the short run, firms will respond by 60 Supply Demand 90 120 150 180 210 240 270 300 QUANTITY (Millions of pounds) Demand Supply (?The following graph shows the short-run supply curve for pecans. Place the orange line (square symbol) on the following graph to show the most likely long-run supply curve for pecans. (Note: Place line either on X and I or on X and T.) PRICE (Dollars per pound) 24 20 16 12 4 0 0 X 2 T 4 8 10 QUANTITY (Thousands of pounds of pecans) Short-Run Supply 6 H 12 Long-Run Supply
- Comment on the following statement: “In the short run, Mr. Mohammed, a seller in the Fruit& Vegetable Market in Al-Aweer, faces a demand curve that is simply a horizontalline at themarket equilibrium price. In other words, competitive sellers, in this market, face perfectlyelastic demand in the short run.”Frozen food manufacturers supply pizza and calzones to perfectly competitive pizza and calzone markets. As the result of an increase in the price of calzones, the firms produces more calzones and fewer pizzas An economist would explain this by saying the supply of calcones increased and the supply of pizzas decreased Othere has been an increase in the quantity supplied of calzones and a decrease in the supply of pizza Othere has been an increase in the quantity supplied of calzones and a decrease in the quantity supplied of pizzas O the supply of calzones increased and the quantity supplied of pizza decreasedComment on another student's post by suggesting a demand or supply shifter different from the one(s) they suggested that would have the same impact on demand or supply. For example, if a student wrote their post about how demand for the good they are writing about would rise due to a change in one demand shifter, you would respond by explaining how the demand for that good would rise due to a change in a different demand shifter. "A carpet cleaning service has just opened and is increasingly becoming popular, many people have experienced their carpets becoming dirty as the spring season rolls in with heavy rain. Since there has been heavy rain the people in this town have been tracking mud all over their carpets ruining the color and staining it, many people have turn to this carpet cleaner to help remove stains and excess mud out of the carpet. This would cause the demand of the service to shift to the right, increasing the price and moving the equilibrium to the right. The price…
- . In Taiwan, there is only one beer producer, called Taiwan Beer. The Taiwanese government has passed a law prohibiting any other company from producing and selling beer in Taiwan. Suppose that the demand for beer in Taiwan increases. Explain what happens in the market for beer in Taiwan in the short run. Specifically, explain what happens to the price of beer, the number of beer producers, and the profits of beer producers. Explain what happens in the market for beer in Taiwan in the long run. Specifically, explain what happens to the price of beer, the number of beer producers, and the profits of beer producers. Explain who benefits and who is hurt by the government regulation granting Taiwan Beer a monopoly.The following graph shows the short-run supply curve for peca Place the orange line (square symbol) on the following graph to show the most likely long-run supply curve for pecans. (Note: Place the points of the line either on N and G or on N and Z.) PRICE (Dollars per pound) 24 20 16 12 N D G Short-Run Supply 10 QUANTITY (Thousands of pounds of pecans) Long-Run Supply ?Suppose that the shrimp industry is in long-run equilibrium at a price of $5 per pound of shrimp and a quantity of 150 million pounds per year. Suppose the Surgeon General issues a report saying that eating shrimp is bad for your health. The Surgeon General’s report will cause consumers to demand shrimp 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. In the long run, some firms will respond by until . Shift the demand curve, the supply curve, or both on the following graph to illustrate both the short-run effects of the Surgeon General’s report and the new long-run equilibrium after firms and consumers finish adjusting to the news. The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry is in the long run.
