Suppose that the turkey industry is in long-run equilibrium at a price of $5 per pound of turkey and a quantity of 350 million pounds per year. Suppose that the Centers for Disease Control (CDC) announces that a chemical found in turkey is causing bacterial infections to spread around the world.

The CDC’s announcement will cause consumers to demand turkey at every price. In the short run, firms will respond by

Shift the demand curve, the supply curve, or both on the following diagram to illustrate these short-run effects of the CDC’s announcement.

DemandSupply PRICE (Dollars per pound)QUANTITY (Millions of pounds)Demand   Supply   

In the long run, some firms will respond by until.

Shift the demand curve, the supply curve, or both on the following diagram to illustrate both the short-run effects of the CDC’s announcement and the new long-run equilibrium after firms and consumers finish adjusting to the news.

DemandSupply PRICE (Dollars per pound)QUANTITY (Millions of pounds)Demand   Supply   

The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry is in the long run.

Answer rating: 100% (QA)

The CDC announcement will cause the consumers to demand less turkey at every price In the shortrun f... View the full answer