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Question: 8 shortrun and longrun effects of a shift in demand...

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8. Short-run and long-run effects of a shift in demand Suppose that the shrimp industry is in long-run equilibrium at a price of $5 per pound of shrimp and a quantity of 450 million pounds per year Suppose that the Centers for Disease Control (CDC) announces that a chemical found in shrimp is causing bacterial infections to spread around the world The CDCs announcement will cause consumers to demand ▼ shrimp 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 CDCs announcement. Supp Demand Supply and 0 90 180 270 380 450 540 630 720 810 900 QUANTITY (Milions of pounds) In the long run, some firms will respond by unti

▼ until 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 the CDCs announcement and the new long-run equilibrium after firms and consumers finish adjusting to the news. 10 Supp Demand Supply and 0 90 180 270 380 450 540 630 720 810 900 QUANTITY (Milions of pounds) ▼ in the long The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry is run

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