Aplia Student Question consider The Competitive MindTap Ceng

Aplia: Student Question consider The Competitive MindTap Cengage Learn x VI Give Myself Away by Wi G Economics question l Che x x -> fi D courses.aplia.com/af/serviet/quiz?quiz-action-takeQuiz&quiz-probGuid-Q4PLCOA801010000002dfc85100b0000;&ctx;= mitchchark-0019 AppsCareerBoltz | Job Se 8. Short-run and long-run effects of a shift in demand Suppose that the shrimp industry is in long-run equilibrium at a price of $5 per pound of shrimp and a quantity of 400 million pounds per year Suppose the Surgeon General issues a report saying that eating shrimp is bad for your health The Surgeon General\'s report will cause consumers to demand shrimp 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 the Surgeon General\'s report. Supp Deman Supply and 0 80 160 240 320 400 480 560 640 720 800 QUANTITY (Millions of pounds) Timeout 59:43

Solution

Answer to 1st blank: Less

Answer to 2nd blank: producing less shrimp and running at a loss.

Answer to 3rd blank: exiting the shrimp industry

Answer to 4th blank: each firm in the industry is once again earning zero profit