Question

In the long run, some firms will respond by until On the graph below, shift the demand curve, the supply curve, or both on the following diagram to illustrate both the short-run effects of the PHAC'S report and the new long-run equilibrium after firms and consumers finish adjusting to the news. Supply Demand Supply PRICE (Dollars per kilogram) Demand 0 100 900 1000 200 300 400 500 600 700 800 QUANTITY (Milions of kilograms) 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 1

less is chicken. chicken and PHAC's repost will cause consumers to demand In shost nin, fiems will respond by produc running at a loss! (Due to negative repost demand decreases and is decreased and fiems are at a loss.) Shost - nun effects this production 400 500 e p (millions) In long run, same firms will respond by exiting the industry until each existing firm earns zero economic profir. some fioms will (Due to losses exit so that each existing firm couns zew economic profit. shost and long nen (supply decreases in cong-run.) 300 400 500 - a (milions) supply cure in this industry shape of long-run horizontall Scanned witontal because price is $5 in the long run.)