70140210280350420490560630700QUANTITY (Millions of pounds)In the long run, some firms will respond byuntilShift the demand curve, the supply curve, or both on the following graph to illustrate both the short-run effects of the Surgeon General's reportand the new long-run equilibrium after firms and consumers finish adjusting to the news.109SupplyDemand876SupplyDemand210 70140210280350420490560630700QUANTITY (Millions of pounds)The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry isin the longrun.PRICE (Dollars per pound)LO 7. Short-run and long-run effects of a shift in demandSuppose that the chicken industry is in long-run equilibrium at a price of $5 per pound of chicken and a quantity of 350 million pounds per year.Suppose the Surgeon General issues a report saying that eating chicken is good for your health.The Surgeon General's report will cause consumers to demandchicken at every price. In the short run, firms will respond byShift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of the Surgeon General's report.109SupplyDemand87Supply3Demand2170140210280350420490560630700QUANTITY (Millions of pounds)In the long run, some firms will respond byuntilPRICE (Dollars per pound)CO

important definition: The short-run is an idea that expresses that, within a specific period in the…

Suppose that the chicken industry is in long-run equilibrium at a price of $5 per pound of chicken and a quantity of 350 million pounds per year. Suppose the Surgeon General issues a report saying that eating chicken is good for your health. The Surgeon General's report will cause consumers to demand chicken 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. 10 9 Supply Demand 7 6 Supply llars per pound)