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 200 million cans per year. Suppose the Surgeon General issues a report saying that eating tuna is bad for your health.The Surgeon General’s report 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 Surgeon General’s report. 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 theSurgeon General issues a report saying that eating tuna is bad for your health.The Surgeon General's report will cause consumers to demand v tuna at every price. In the short run, fims will respond byShit the demand curve, the supply curve, or both an the following graph to Mustrate these short-run effects of the Surgean General's report.10SupplyDemandSupplyDemand120 180 200240 280 120 20QLUANTITY (MIlions of cans)In the long run, some firms will respond byuntilShit the demand curve, the supply curve, or both an the following graph to Mustrate both the short-run effects of the Surgean General's reportand the new lang-run equWbrium after fims and consumers finish adjusting to the news.10SupplyDemandSupplyDemandD180 200 240 200 120 300 400120QUANTITY (Milions of cans)The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry isin the longrun.Cueo Jad smon) anPRILE (UOlars per canj

Part 1) Beacause of Surgeon General's report consumers demand less tuna at all price. The report…

Short-run and long-run effects of a shift in demand 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 Surgeon General issues a report saying that eating tuna is bad for your health. The Surgeon General’s report 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

Short-run and long-run effects of a shift in demand 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 Surgeon General issues a report saying that eating tuna is bad for your health. The Surgeon General’s report 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

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter14: Monopoly

Section: Chapter Questions

Problem 14.13P

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8. Short-run and long-run effects of a shift in demand

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 Surgeon General issues a report saying that eating tuna is bad for your health.

The Surgeon General’s report 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 Surgeon General’s report.

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
Surgeon General issues a report saying that eating tuna is bad for your health.
The Surgeon General's report will cause consumers to demand v tuna at every price. In the short run, fims will respond by
Shit the demand curve, the supply curve, or both an the following graph to Mustrate these short-run effects of the Surgean General's report.
10
Supply
Demand
Supply
Demand
120 180 200
240 280 120 20
QLUANTITY (MIlions of cans)
In the long run, some firms will respond by
until
Shit the demand curve, the supply curve, or both an the following graph to Mustrate both the short-run effects of the Surgean General's report
and the new lang-run equWbrium after fims and consumers finish adjusting to the news.
10
Supply
Demand
Supply
Demand
D
180 200 240 200 120 300 400
120
QUANTITY (Milions of cans)
The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry is
in the long
run.
Cueo Jad smon) an
PRILE (UOlars per canj

Defintion Defintion Curve that represents the graphical relationship between the total supply of goods and services and the price level in the economy. When the price level increases, producers tend to supply more of a product in the market to earn a higher revenue or vice versa.

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