Question

Question

Short-run and long run effects of a shift in demand
B. Short-run and long-run effects of a shaft in demand Suppese that the tofu tadustry is initlely operathg in long-run equalibnum at a price invel of ss per biock of tofu and cuantity of 150 milliss b

Answer 1

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 25 million blocks per year. Suppose a leading foodie video blogger raises awareness for a scholarly article that links tofu consumption to premature hair loss and unhealthy skin.

The viral video is expected to cause consumers to demand (Less or More) tofu at every price. In the short run, firms will respond by ______________.

Short-run and long-run effects of a shift in demand

Short-run and long-run effects of a shift in demand

Short-run and long-run effects of a shift in demand

exiting the industry

producing less tofu and running at a loss

producing the same amount of tofu and earning positive profit

entering the industry