Suppose that the perfectly competitive chicken industry is in long-run equilibrium at a price of $3 per kilogram of chicken and a quantity of 600 million kilograms per year. Suppose Health Canada issues a report saying that eating chicken is bad for your health. Health Canada's report will cause consumers to demand chicken at every price. In the short run, firms will respond by Shift the supply curve, the demand curve, or both on the following diagram to illustrate these short-run effects of Health Canada's announcement. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther Supply Demand Supply Demand PRICE (Dellars per kilogram) QUANTITY Millions of kilograms M

6. A record company estimates the industry demand for "hard alternative rock" albums to be: QD-1000 -125 P. It estimates the industry supply to be: QS = 125-P a. Given these estimates, what does it expect the industry output and price to be? b. A government commission announces that lyrics on "hard alternative rock" albums are offensive and should be banned. This causes consumers to purchase 20% more of such albums at any given price, compared to question 6a. What effect will this have on industry output and the price? c. Calculate the consumer surplus for parts a and b above. Are consumers better or worse off given the commission's recommendation?

Charles's Fire Engines is the sole seller of fire engines in the fictional country of Pyrotania. Initially, Charles produced five fire engines, but he has decided to increase production to six fire engines. The following graph shows the demand curve Charles faces. As you can see, to sell the additional engine, Charles must lower his price from $160,000 to $120,000 per fire engine. Note that while Charles gains revenue from the additional engine he sells, he also loses revenue from the initial five engines because he sells them all at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial five engines by selling at $120,000 rather than $160,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $120,000. PRICE (Thousands of dollars per fire engine) 8 8 8 8 8 8 200 180 160 140 120 100 8 8 8 8 60 20 0 1 Demand 3 4 5 6 7 QUANTITY (Fire…

Current tuition at Benedict College is around $24, 000 a year. Show what would likely happen to demand for educational services at the school if tuition went up to $40, 000 a year.               The Ford F-150 (best selling vehicle in the U.S. for the last three decades) is currently priced at about $40, 000 to $45, 000. Show what would likely happen to the amount of vehicles offered for sale if the vehicle price went up to $52, 000.               You have four kids at home and they are somewhat clumsy and spill a lot of milk and other drinks. While at DG you compare some paper towels options. The first option is a roll of towels that contains 43 sq. ft. of paper at a price of $1.75. The second option contains 67.3 sq. ft. of paper at $2.00. Which is the better choice?             One of the problems with K-12 education in the U. S. is that there are not enough men (especially men of color) within the classrooms. The rational is that the salaries are too low. Show what…