8. Short-run and long-run effects of a shift in demand Suppose that the jackfruit industry...
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8. Short-run and long-run effects of a shift in demand Suppose that the jackfruit industry is initially operating in long-run equilibrium at a price level of $5 per pound of jackfruit and quantity of 125 million pounds per year. Suppose that the Food and Drug Administration (FDA) reports that compounds naturally occurring in jackfruit are linked to chronic illness. The FDA's research is expected to cause consumers to demand jackfruit at every price. In the short run, firms will respond by Shift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of the fDA's research. In the long run, some firms will respond b) until Shift the demand curve, the supply curve, or both on the following graph to illustrate both the short-run effects of the fDA's research and the new long-run equilibrium after firms and consumers finish adjusting to the news. The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry is in the long run
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