Suppose that the tuna industry is in long-run equilibrium at a price of $5 per can of tuna and a quantity of 50 million cans per year. Suppose that WebMD claims that a protein found in tuna will increase your expected life span by 2 years.
WebMD's claim will cause consumers to demand tuna 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 WebMD's claim.
Suppose that the tuna industry is in long-run equilibrium at a price of $5 per can of tuna and a quantity of 50 million cans per year. Suppose that WebMD claims that a protein found in tuna will increase your expected life span by 2 years.
WebMD's claim will cause consumers to demand tuna 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 WebMD's claim.