Final answer:
Following the publication that suggests health benefits of tofu, firms in the tofu industry are expected to see a short-run increase in consumer demand, leading to higher prices and increased quantity sold as they attempt to adjust production to meet the new demand.
Step-by-step explanation:
Suppose that the tofu industry is initially operating in long-run equilibrium at a price level of $5 per block of tofu and quantity of 100 million blocks per year. A top medical journal publishes research suggesting that animal-alternative protein sources such as tofu could increase your expected lifespan by 3 years. This publication is expected to cause an increase in the consumer demand for tofu at every price point.
In the short run, the firms in the tofu industry will respond to the increased demand by attempting to increase production to meet the new demand. This will likely lead to an increase in the price of tofu as the additional demand puts upward pressure on prices, and the firms may not be able to increase production instantaneously due to capacity constraints.
If the demand increase is substantial and persistent, firms may invest in expanding their production capacity in the long run. Meanwhile, prices may remain higher until supply can catch up with the increased demand, assuming the cost of production doesn't significantly change in response to the new market conditions. Therefore, in the short run, we can expect to see an increase in both the price and quantity of tofu sold.