ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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First option is "more" or "less"
Second option is "producing more jackfruit and earning positive profit" or "producing the same amount of jackfruit and running at loss" or "entering the industry" or producing the same amount of jackfruit and eanring positive profit" or "producing less jackfruit and running at loss" or "exiting the industry"
Third option is "producing more jackfruit and earning positive profit" or "producing more jackfruit and running at loss" or "entering the industry" or producing less jackfruit and eanring positive profit" or "producing less jackfruit and running at loss" or "exiting the industry"
Fourth option is "new technologies are discovered that lower costs" or "each firm in the industry is once again earning zero profit" or "consumer demand returns to its orignial level" or jackfruit populations grow large enough to support more firms"
Fifth option is "upward sloping" or "downard sloping" or "horizontal" or "vertical"
Transcribed Image Text:Suppose that the jackfruit industry is initially operating in long-run equilibrium at a price level of $5 per pound of jackfruit and quantity of 175 million
pounds per year. Suppose a top medical journal publishes research that animal-alternative protein sources such as jackfruit could increase your
expected lifespan by 4 years.
The publication is expected to 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 publication.
PRICE (Dollars per pound)
10
9
PRICE (Dollars per pound)
8
0
In the long run, some firms will respond by
10
9
0
8
35
0
Supply
0 35
Demand
70 105 140 175 210 245 280 315 350
QUANTITY (Millions of pounds)
Shift the demand curve, the supply curve, or both on the following graph to illustrate both the short-run effects of the publication and the new long-
run equilibrium after firms and consumers finish adjusting to the news.
Supply
jackfruit at every price. In the short run, firms will respond by
Demand
70 105 140 175 210 245 280 315 350
QUANTITY (Millions of pounds)
Demand
-
Supply
Demand
(?)
Supply
until
(?)
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