Question: Please explain all work, especially in detail for the graphs and why we move the curves and why. I need help with ALL the questions
Please explain all work, especially in detail for the graphs and why we move the curves and why. I need help with ALL the questions please :
Shortrun and longrun effects of a shift in demand
Suppose that the phirodite industry is initially operating in longrun equilibrium at a price level of $ per pound of phirodite and quantity of millic
pounds per year. Suppose that the Food and Drug Administration FDA reports that compounds naturally occurring in phirodite are linked to chronic
illness.
The FDA's research is expected to cause consumers to demand
phirodite 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 shortrun effects of the FDA's research.
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 shortrun effects of the FDA's research and the new longrun equilibrium after firms and consumers finish adjusting to the news.
The new equilibrium price and quantity suggest that the shape of the longrun supply curve in this industry is in the long run.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
