?. Shortrun and long-run eects oi a shift in demand Suppose that the perfectly competiljye turkey industry is in longrun equilibrium at a price of $3 per pound of turkey and a quantity of l] million pounds per year. Suppose the Surgeon General issues a report saying that eating turkey is bad for your health. The Surgeon General's report will cause consumers to demand V turkey at every price. In the short run, rms will respond by Y 1'. Shortrun and long-run effects oi a shift in demand Suppose that the perfectly competitive turkey industry is in longrun equilibrium at a price of $3 per pound of turkey and a quantity of EICID million pounds per year. Suppose the Surgeon General issues a report saying that eating turkey is bad for your health. The Surgeon General's report will cause consumers to demand 7 turkey at every price. In the short run, rms will respond by Shift the supply curve, the demand curve, or both on the folio ram to Hiustrate these shortrun effects of the Surgeon Genomi's announcement. 7. Shortrun and long-run effects oi a Shift in demand Suppose that the perfectly competitive turkey industry is in longrun equilibrium at a price of $3 per pound of turkey and a quantity of 600 million pounds per year. Suppose the Surgeon General issues a report saying that eating turkey is bad for your health. The Surgeon General's report will cause consumers to demand V turkey at every price. In the short run, rms will respond by v entering the industry iagram to Illustrate these shortrun e'ects of the Surgeon Generai's exiting the industry producing more turkey and earning positive prot I producing the same amount of turkey and earning positive prot producing the same amount of turkey and running at a loss (I?) .'on. Curves will snap into position, so if you try to move a curve and it snaps back producing less turkey and running at a loss Shift the supply curve, the demand curve, or both on the following diagram to illustrate these short-run effects of the Surgeon General's announcement. Note: Select and drag one or both of the curves to the desired position. Curves will snap into posion, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. ('3) a o 5 Supp Demand ,__ |:| E 4 :l 8 Supply a D. E E LIJ 2 2 E Demand 0 2m 4130 am am 10m 12m QUANTITY illiorls of uunds In the long run, some rms will respond by V until turkey populations grow large enough to support more rms ng diagram to illustrate both the shortrun effects of the Surgeon General's new technolo ies are discovered that lower costs g :- oonsumers nish adjusting to the Surgeon General's announcement. each rm in the industry is once again earning zero prot consumer demand returns to its original level