No image solution Suppose that the seitan industry is initially operating in long-run equilibrium at a price level of $5 per pound of seitan and quantity of 25 millionpounds per year. Suppose a top medical journal publishes research that animal-alternative protein sources such as seitan could increase your expectedlifespan by 5 years.The publication is expected to cause consumers to demandShift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of the publication.PRICE (Dollars per pound)1098PRICE (Dollars per pound)75210100In the long run, some firms will respond by9N15010 15 20Supply2530 35QUANTITY (Millions of pounds)0 5DemandSupply87KDemand21040Shift 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.45 5015 20 25QUANTITY (Millions of pounds)30 35 40 45seitan at every price. In the short run, firms will respond by50DemandSupplyDemand(?)Supply▼ until(?The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry isrun.in the long

Demand curve represents quantity demanded corresponding to different price level. Demand curve is…

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. PRICE (Dollars per pound) 10 run. 9 7 6 2 1 0 0 5 Supply Demand 10 15 20 25 30 35 QUANTITY (Millions of pounds) 40 45 50 Demand Supply The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry is in the long

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. PRICE (Dollars per pound) 10 run. 9 7 6 2 1 0 0 5 Supply Demand 10 15 20 25 30 35 QUANTITY (Millions of pounds) 40 45 50 Demand Supply The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry is in the long

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter12: The Partial Equilibrium Competitive Model

Section: Chapter Questions

Problem 12.9P

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Suppose that the seitan industry is initially operating in long-run equilibrium at a price level of $5 per pound of seitan and quantity of 175 million pounds per year. Suppose a top medical journal publishes research that animal-alternative protein sources such as seitan could increase your expected lifespan by 5 years. The publication is expected to cause consumers to demand (less/more) seitan at every price. In the short run, firms will respond by ( attached image). Shift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of the publication In the long run, some firms will respond by (attached image) until (consumer demand returns to original level, each firm in the industry is once again earning zero profit, seitan populations grow large enough to support more firms, new technologies are discovered that lower costs) Now Shift the demand curve, the supply curve, or both on another graph (same as the first) to illustrate both…
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