8. Short-run and long-run effects of a shift in demand Suppose that the perfectly competitive chicken industry is in long-run equilibrium at a price of $3 per pound of chicken and a quantity of 600 million pounds per year. Suppose the Surgeon General issues a report saying that eating chicken is bad for your health. The Surgeon General's report will cause consumers to demand chicken at every price. In the short run, firms will respond by Shift the supply curve, the demand curve, or both on the following diagram to illustrate these short-run effects of the Surgeon General's announcement. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. PRICE (Dollars per pound) 200 400 600 800 10 Supply Demand Demand 1000 1200 QUANTITY OF OUTPUT (Millions of pounds) Supply In the long run, some firms will respond by until Shift the supply curve, the demand curve, or both on the following diagram to illustrate both the short-run effects of the Surgeon General's announcement and the new long-run equilibrium after firms and consumers finish adjusting to the Surgeon General's announcement. Shift the supply curve, the demand curve, or both on the following diagram to illustrate both the short-run effects of the Surgeon General's announcement and the new long-run equilibrium after firms and consumers finish adjusting to the Surgeon General's announcement. PRICE (Dollars per pound) 200 400 600 800 Supply Demand Demand 1000 1200 QUANTITY OF OUTPUT (Millions of pounds) !!!! Supply