Sub : EconomicsPls answer very fast.I ll upvote. Thank You In the long run, some firms will respond byShift 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.9Supply8ĶIDemandPRICE (Dollars per pound)10100 4080 120 160 200 240 280QUANTITY (Millions of pounds)320 360 400DemandDuntilSupply100 4080 120 160 200 240 280 320 360 400QUANTITY (Millions of pounds)The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry isrun.upward slopingdownward slopinghorizontalverticalin the long 4. Short-run and long-run effects of a shift in demandSuppose that the shrimp industry is in long-run equilibrium at a price of $5 per pound of shrimp and a quantity of 200 million pounds per year.Suppose the Surgeon General issues a report saying that eating shrimp is bad for your health.The Surgeon General's report will cause consumers to demandShift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of the Surgeon General's report.PRICE (Dollars per pound)1098721001080120160200240280SupplyDemand320shrimp at every price. In the short run, firms will respond by360 400DemandOSupply?

An individual’s willingness to pay for each unit of the quantity he or she wishes to consume is…

4. 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 200 million pounds per year. Suppose the Surgeon General issues a report saying that eating shrimp is bad for your health. The Surgeon General's report will 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 Surgeon General's report. PRICE (Dollars per pound) 10 9 8 2 0 0 10 80 120 I I 160 200 240 Supply Demand 280 shrimp at every price. In the short run, firms will respond by 320 360 100 Demand 0 Supply ?

4. 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 200 million pounds per year. Suppose the Surgeon General issues a report saying that eating shrimp is bad for your health. The Surgeon General's report will 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 Surgeon General's report. PRICE (Dollars per pound) 10 9 8 2 0 0 10 80 120 I I 160 200 240 Supply Demand 280 shrimp at every price. In the short run, firms will respond by 320 360 100 Demand 0 Supply ?

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 4.7P

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Ike’s Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only one factory. However, it is considering expanding production to two or even three factories. The following table shows the company’s short-run average total cost (SRATC) each month for various levels of production if it uses one, two, or three factories. (Note: Q equals the total quantity of bikes produced by all factories.) Number of Factories Average Total Cost (Dollars per bike) Q = 100 Q = 200 Q = 300 Q = 400 Q = 500 Q = 600 1 360 200 160 240 400 720 2 540 300 160 160 300 540 3 720 400 240 160 200 360 Suppose Ike’s Bikes is currently producing 500 bikes per month in its only factory. Its short-run average total cost is per bike. Suppose Ike’s Bikes is expecting to produce 500 bikes per month for several years. In this case, in the long run, it would choose to produce bikes using . On the following graph, plot the three SRATC…
Ike’s Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only one factory. However, it is considering expanding production to two or even three factories. The following table shows the company’s short-run average total cost (SRATC) each month for various levels of production if it uses one, two, or three factories. (Note: Q equals the total quantity of bikes produced by all factories.) Number of Factories Average Total Cost (Dollars per bike) Q = 100 Q = 200 Q = 300 Q = 400 Q = 500 Q = 600 1 360 200 160 240 400 720 2 540 300 160 160 300 540 3 720 400 240 160 200 360 Suppose Ike’s Bikes is currently producing 600 bikes per month in its only factory. Its short-run average total cost is per bike. Suppose Ike’s Bikes is expecting to produce 600 bikes per month for several years. In this case, in the long run, it would choose to produce bikes usingone factory . On the following graph, plot…