Question

8. Short-run and long run effects of a shift in demand Suppose that the perfectly competitive tuna industry is in long-run equilibrium at a price of $3 per can of tuna and a quantity of 600 million cans per year. Suppose Health Canada issues a report saying that eating tuna is bad for your health Health Canada's report will cause consumers to demand tuna at every price. In the short run, firms will respond by Shift the supply curve, the demand curve, or both on the following diagram to illustrate these short-run effects of Health Canada's announcement. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, Just drag it a little farther. QUANTITY Mion of

Answer 1

Health Canada's will cause consumer to demand less tuna at every price In short eum, firms will respond by at a loss prodlucing less tuna & running Industry Gume Tuna Industry is consta I dusty is constant Cost DD JODI