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 150 million pounds per year. Suppose that the Food and Drug Administration (FDA) reports that compounds naturally occurring in jackfruit are linked to chronic illness. The FDA's research is expected to cause consumers to demand jackfruit at every price. In the short run, firms will respond by
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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 FnSuppose that the seitan industry is initially operating in long-run equilibrium at a price level of $5 per pound of seitan and quantity of 125 million pounds per year. Suppose that the Food and Drug Administration (FDA) reports that compounds naturally occurring in seitan are linked to chronic illness. The FDA's research 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 FDA's research. PRICE (Dollars per pound) 10 9 LD 8 2 19 1 0 0 25 Supply Demand seitan at every price. In the short run, firms will respond by 50 75 100 125 150 175 200 225 250 QUANTITY (Millions of pounds) Demand O SupplyOmari's HookNLadder is the only company selling fire engines in the fictional country of Alexandrina. Omari initially produced eight trucks, but then decided to increase production to nine trucks. The following graph gives the demand curve faced by Omari's HookNLadder. As the graph shows, in order to sell the additional fire truck, Omari must lower the price from $80,000 to $40,000 per truck. Notice that Omari gains revenue from the sale of the additional engine, but at the same time, he loses revenue from the initial eight engines because they are all sold at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial eight engines by selling at $40,000 rather than $80,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $40,000. PRICE (Thousands of dollars per fire engine) 220 200 180 160 140 120 100 80 60 40 20 0 Omari 0 1 + 2 3 4 5…
- Omari's HookNLadder is the only company selling fire engines in the fictional country of Alexandrina. Omari initially produced four trucks, but then decided to increase production to five trucks. The following graph gives the demand curve faced by Omari's HookNLadder. As the graph shows, in order to sell the additional fire truck, Omari must lower the price from $105,000 to $90,000 per truck. Notice that Omari gains revenue from the sale of the additional engine, but at the same time, he loses revenue from the initial four engines because they are all sold at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial four engines by selling at $90,000 rather than $105,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $90,000. PRICE (Thousands of dollars per fire engine) 165 150 135 120 105 Omari 90 75 60 45 30 15 Revenue Lost Demand…Comment 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…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 the Centers 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 demand tuna 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 CDC's announcement. 10 9. Supply Demand 7 Supply 4 3 Demand 2 1 30 60 90 120 150 180 210 240 270 300 QUANTITY (Millions of cans) PRICE (Dollars per can)
- 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 (?Suppose that the tuna industry is in long-run equilibrium at a price of $5 per can of tuna and a quantity of 250 million cans per year. Suppose that the Centers 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 demand tuna 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 the CDC's announcement. 10 Supply Demand 8 7 Supply 3 Demand 2 1 50 100 150 200 250 300 350 400 450 500 QUANTITY (Millions of cans) In the long run, some firms will respond by until PRICE (Dollars per can)The 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)
- 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.”Suppose that the tuna industry is in long-run equilibrium at a price of $5 per can of tuna and a quantity of 200 million cans per year. Suppose the Public Health Agency of Canada (PHAC) issues a report saying that eating tuna is bad for your health. 1st GRAPH: The PHAC's report will cause consumers to demand ____ (less OR more) tuna at every price. In the short run, firms will respond by ______ (exiting the industry OR producing the same amount of tuna and running at a loss OR producing less tuna and running at a loss OR producing more tuna and earning positive profit OR entering the industry OR producing the same amount of tuna and earning positive profits) In the long run, some firms will respond by ______ (producing more tuna and earning positive profit OR producing less tuna and running at a loss OR exiting the industry OR producing less tuna and earning positive profit OR entering the industry OR producing more tuna and running at a loss) until _______ (tuna population…Audio and hints Each spring, the town of Kitefield has a festival of kites. One year, newcomers arrive in Kitefield and establish a kite- production faality. Their presence shifts the supply curve to S2. As a result of the new competition, the Kitefield town council is concemed about a possible loss of income to the long-established kite makers in town. To protect their income, the council passes an ordinance forbidding the sale of kites at any price BELOW $18. Kite Demand and Supply Price 15 Floor 10 GID GS 200 00 400 200 Quantity of Kites 1. Analyze the effect of Kitefield's new ordinance or policy. a. Describe the type of policy enacted (Floor or Ceiling). b. Describe the problem it creates (Surplus or Shortages). C. Explain what causes the problem identified in part b d. Explain how the policy in part A caused the problem in part B Price per Kite