First option: More or Less

Second option: entering the industry, producing the same amount of chicken and running at a loss, producing less chicken and running at a loss, producing more chicken and earning positive profit, exiting the industry, producing the same amount of chicken and earning positive profit

Third option: same as second option

Fourth option: each firm in the industry is once again earning zero profit, new technologies are discovered that lower costs, chicken populations grow large enough to support more firms, consumer demand return to its original level

Fifth option: vertical, horizontal, upward sloping, downward sloping

CENGAGE |MINDTAP Q Search th Homework (Ch 14) 8. Short-run and long-run effects of a shift in demand 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 O Supply Demand PRICE (Dollars per pound) Supply Demand NHomework (Ch 14) E Q Search this course (? ) X 10 O A-Z Supply Demand PRICE (Dollars per pound) O Supply A w Demand N 70 140 210 280 350 420 490 560 630 700 QUANTITY (Millions of pounds) In the long run, some firms will respond until by Shift the demand curve, the supply curve, or both on the following graph to illustrate both the short-run effects of the Surgeon General's reportHomework (Ch 14) Shift the demand curve, the supply curve, or both on the following graph to illustrate both the short-run effects of the Surgeon General's report Q Search and the new long-run equilibrium after firms and consumers finish adjusting to the news. 10 O Supply Demand PRICE (Dollars per pound) 6 Supply Demand N 70 140 210 280 350 420 490 560 630 700 QUANTITY (Millions 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