Homework Help is Here – Start Your Trial Now!
Business
Economics
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 Jackfruit 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 publication. PRICE (Dolars per pound) In the long run, some firms will respond by PRICE (Dolars per pound) 10 run. 9 B 7 6 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. 1 0 0 Supply 105 140 175 210 245 2.80 315 350 QUANTITY (Millions of pounds) Demand 1 1 1 1 Supply Demand Demand 35 70 105 140 175 210 245 280 315 350 QUANTITY (Millions of pounds) + Supply Demand (?) Supply until (?) The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry is in the long

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 Jackfruit 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 publication. PRICE (Dolars per pound) In the long run, some firms will respond by PRICE (Dolars per pound) 10 run. 9 B 7 6 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. 1 0 0 Supply 105 140 175 210 245 2.80 315 350 QUANTITY (Millions of pounds) Demand 1 1 1 1 Supply Demand Demand 35 70 105 140 175 210 245 280 315 350 QUANTITY (Millions of pounds) + Supply Demand (?) Supply until (?) The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry is in the long

Principles of Economics 2e
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 7SCQ: What would the gasoline price elasticity of supply mean to UPS or FedEx?
See similar textbooks
icon
Related questions
Question
( 8. Short-run and long-run effects of a shift in demand 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. (punod jad sig 10 PRICE (Dolars per pound) In the long run, some firms will respond by 10 a 8 T 6 5 3 2 Supply EX Demand Shift the demand curve, the supply curve, or both on the following graph to Tlustrate both the short-run effects of the publication and the new long- run equilibrium after firms and consumers finish adjusting to the news 1 915 0 005 140 QUANTITY Mllions of pounds) 35 280 315 360 Demand Jackfruit at every price. In the short run, firms will respond by 105 140 QUANTITY (Millions of pounds) 1210 245 280 315 350 O Dersand 1 Supply 0 Demand ? Supply The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry is run. in the long
Transcribed Image Text:( 8. Short-run and long-run effects of a shift in demand 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. (punod jad sig 10 PRICE (Dolars per pound) In the long run, some firms will respond by 10 a 8 T 6 5 3 2 Supply EX Demand Shift the demand curve, the supply curve, or both on the following graph to Tlustrate both the short-run effects of the publication and the new long- run equilibrium after firms and consumers finish adjusting to the news 1 915 0 005 140 QUANTITY Mllions of pounds) 35 280 315 360 Demand Jackfruit at every price. In the short run, firms will respond by 105 140 QUANTITY (Millions of pounds) 1210 245 280 315 350 O Dersand 1 Supply 0 Demand ? Supply The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry is run. in the long
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Price-Taking Firm
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
SEE MORE TEXTBOOKS