In the long run, some firms will respond byShift the demand curve, the supply curve, or both on the following graph to illustrate both the short-run effects of WebMD's claim and the new long-run equilibrium after firms and consumers finish adjusting to the news.PRICE (Dollars per can100670SupplyDemand140 210 200 350 420 450 560 630 700QUANTITY (Millions of cans)DemanduntilSupplyThe new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry isrun.in the long 8. Short-run and long run effects of a shift in demandSuppose that the tuna industry is in long-run equilibrium at a price of $5 per can of tuna and a quantity of 350 million cans per year. Suppose thatWebMD daims that a protein found in tuna will increase your expected lifespan by 2 years.WebMD's claim will cause consumers to demand morePRICE (Dollars per caniproducing more tuna and earning positive profitShift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of WebMD's claim.?0tuna at every price. In the short run, firms will respond bySupplyDemand70 140 210 200 350 420 400 560 630 700QUANTITY (Millions of cans)Demand-0Supply

WHen market demand equals market supply then the corresponding quantity and price are called…

In the long run, some firms will respond by Shift the demand curve, the supply curve, or both on the following graph to illustrate both the short-run effects of WebMD's claim and the new long- run equilibrium after firms and consumers finish adjusting to the news. PRICE (Dollars per can Supply Demand 70 140 210 200 350 420 400 540 630 700 QUANTITY (Misions of cans) Demand Supply until ? The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry is, nun. in the long

In the long run, some firms will respond by Shift the demand curve, the supply curve, or both on the following graph to illustrate both the short-run effects of WebMD's claim and the new long- run equilibrium after firms and consumers finish adjusting to the news. PRICE (Dollars per can Supply Demand 70 140 210 200 350 420 400 540 630 700 QUANTITY (Misions of cans) Demand Supply until ? The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry is, nun. in the long

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter5: Elasticity

Section: Chapter Questions

Problem 27CTQ: Can you think of an industry (or product) with near infinite elasticity of supply in the short term?...

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what are the reason/s of banning McDonald’s from other country’s?
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Vik and Fleet produce trainers in the sports-shoe market. For one of their main productsthey have the following demand curves: Vik PV =175 - 1:2Qv, Fleet Pf = 125 - 0:8Qfwhere P is in Rs. and Q is in pairs per week. The firms are currently selling 80 and 75 pairsof their products per week respectively.a. What are the current price elasticities for the products?
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Alex's Fire Engines is the sole seller of fire engines in the fictional country of Pyrotania. Initially, Alex produced eight fire engines, but he has decided to increase production to nine fire engines. The following graph shows the demand curve Alex faces. As you can see, to sell the additional engine, Alex must lower his price from $80,000 to $40,000 per fire engine. Note that while Alex gains revenue from the additional engine he sells, he also loses revenue from the initial eight 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 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. RICE (Thousands of dollars per fire engine) 78°F Sunny 200 180 F1 160 140 120 100 80 60 40 F2 -0- F3 0+ F4 Demand F5 Revenue Lost Revenue Gained OL…
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Creative Homework/Short Project Assume that you arean entrepreneur who runs a bakery that sells glutenfree breads and cakes. You believe that the currenteconomic conditions merit an increase in the price ofyour baked goods. You are concerned, however, thatincreasing the price might not be profitable becauseyou are unsure of the price elasticity of demand for yourproducts. Develop a plan for the measurement of priceelasticity of demand for your products. What findingswould lead you to increase the price? What findingswould cause you to rethink the decision to increaseprices? Develop a presentation for your class outlining(1) the concept of elasticity of demand, (2) why raisingprices without understanding the elasticity would bea bad move, (3) your recommendations for measurement, and (4) the potential impact on profits for elasticand inelastic demand
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5. Elasticity and total revenue The following graph shows the daily demand curve for bikes in Miami. . Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve. Note: You will not be graded on any changes made to this graph. 300 275 250 Total Revenue 225 200 A 175 150 125 100 75 50 25 Demand 10 15 20 25 30 35 40 45 50 55 60 QUANTITY (Bikes) On the folowing graph, use the green point (triangle symbol) to plot the annual total revenue when the market price is $50, $75, $100, $125, $150, $175, and $200 per bike. 5300 4500 Total Revenue 4500 400 W 3700 3300 2900 2500 2100 1700 25 50 75 100 125 150 175 200 225 250 275 300 PRICE (Dollars per bike) According to the midpoint method, the price elasticity of demand between points A and B is approximately Suppose the price of bikes is currently $100 per bike, shown as point B on the initial graph. Because the demand between points A and B is va $25-per-bike increase in price will lead to v in…
38. Suppose that a consumer's annual(income decreased by RO 300, causing a 15% decrease in the quantity of beef the consumer demands. If the consumer has an Ancome elasticjty of demand.of 1.0 for beef, what is her new income? a. RO 2700, b. RO 3000. C. RO 1700 d. RO 3300. 15 |-0 = 300 -1,7