Question

8. Short-run and long-run effects of a shift in demand Suppose that the chicken industry is in long-run equilibrium at a price of $5 per pound of chicken and a quantity of 250 million pounds per year. Suppose the Surgeon General issues a report saying that eating chicken is good for your health The Surgeon General's report will cause consumers to demand more ? chicken at every price. In the short run, firms will respond by entering the industry exiting the industry entering the industry producing less chicken and running at a loss producing the same amount of chicken and running at a loss producing the same amount of chicken and earning positive profit producing more chicken and earning positive profit aph to illustrate these short-run effects of the Surgeon General's report. Demand Supply 5 emand 0 50 00 200 250 300 350 400 450 500 QUANTITY (Millions of pounds)
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Answer 1