1.The length of time between the short run and long run varies across sectors of the economy. For the following industries, estimate the time it takes to reach the "long run" based upon your knowledge of how quickly prices in this industry change in response to the given shock. Describe the rational underlying each of your estimates.

a)gasoline prices after an announcement of a reduction in OPEC production

ans.

b)banana prices after a severe hurricane destroys bananas in St. Mary

Suzuki car prices after auto workers receive an increase in wages