3.5 After a series of powerful earthquakes devastated towns and villages across central Italy in 2016, the Italian government promised to rebuild “everything, 100 percent” (www.dw.com/italy-vowsto-

rebuild-after-latest-quakes/a-36179325). Use side-by-side firm and market diagrams to show the effects (number of firms, prices, output, profits) of such a shift in demand of one such industry, such as construction materials, in both the short run and the long run. Explain how your answer depends on whether the shift in demand is expected to be temporary or permanent.