8. Short-run and long-run effects oi a shift in demand Suppose that the tempeh industry is initially operating in longrun equilibrium at a price level of $5 per pound of tempeh and quantity of 150 million pounds per year. Suppose a leading foodie video blogger raises awareness for a scholarly article that links tempeh consumption to premature hair loss and unhealthy skin. The viral video is expected to cause consumers to demand V tempeh at every price. In the short run, rms will respond by V producing the same amount of tempeh and running at a loss .ph to illustrate these short-run e'ects of the viral video. producing more tempeh and earning positive prot exiting the industry producing the same amount of tempeh and earning positive prot entering the industry producing less tempeh and running at a loss ---------+ PRICE (Dollars per pound) El so so so 120 150 130 210 240 2?!) ado QUANTITY {Millions of pounds] In the long run, some firms will respond by until Shift the demand curve, the supply curve, or both on the following graph to illustrate both the short-run effects of the viral video and the new long- run equilibrium after firms and consumers finish adjusting to the news. 10 O Supply Demand Supply PRICE (Dollars per pound) W Demand N 0 30 60 90 0 150 180 210 240 270 300 QUANTITY (Millions of pounds)In the long run, some firms will respond by until entering the industry Shift the demand curve, the supply curve, or exiting the industry ort-run effects of the viral video and the new long- run equilibrium after firms and consumers fir producing less tempeh and running at a loss producing less tempeh and earning positive profit producing more tempeh and running at a loss producing more tempeh and earning positive profit 10 O Supply Demand Co Supply PRICE (Dollars per pound) Demand N 30 60 90 120 150 180 210 240 270 300 QUANTITY (Millions of pounds)In the long run, some firms will respond by V until consumer demand returns to its original level g graph to illustrate both the shortrun effects of the Viral video and the new long tempeh populations grow large enough to support more firms news. new technologies are discovered that lower costs ('3 each firm in the industry is once again earning zero prot SUP\" Demand Supply PRICE [Dollars per pound) o 30 so 90 120 150 130 210 240 270 300 QUANTITY (Millions of pounds) run equilibrium after firms and consumers finish adjusting to the news. 9 8 SUP\" Demand H T El 13 C :5 8 a Supply 5 CL (.0 e 5 (I! g I e 4 I I e a : 2 I I 1 I vertical I o upward sloping u an an 90 120 150 130 210 240 270 300 QUANTITY (Millions of pounds) horizontal downward sloping The new equilibrium price and quantity suggest that the shape of the longrun supplyr curve in this industry is V in the long run. 8. Short-run and long-run effects of a shift in demand Suppose that the tempeh industry is initially operating in long-run equilibrium at a price level of $5 per pound of tempeh and quantity of 150 million pounds per year. Suppose a leading foodie video blogger raises awareness for a scholarly article that links tempeh consumption to premature hair loss and unhealthy skin. The viral video is expected to cause consumers to demand _ tempeh 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 viral video. 10 O Supply Demand Supply PRICE (Dollars per pound) Demand N 0 30 60 90 120 150 180 210 240 270 300 QUANTITY (Millions of pounds)