8. Short-run and long-run effects of a shift in demand Suppose that the turkey industry is in long-run equilibrium at a price of $5 per pound of turkey and a quantity of 100 million pounds per year. Suppose the Surgeon General issues a report saying that eating turkey is bad for your health. The Surgeon General's report will cause consumers to demand * turkey 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. 10 O Supply Demand co Supply PRICE (Dollars per pound) Demand 20 40 60 80 100 120 140 180 180 QUANTITY (Millions of pounds) In the long run, some firms will respond by untilShift the demand curve, the supply curve, or both on the following diagram to illustrate both the short-run effects of the Surgeon General's report and the new long-run equilibrium after firms and consumers finish adjusting to the news. 10 O 0O Supply Demand Supply 01 PRICE (Dollars per pound) Demand 0 20 40 60 80 100 120 140 180 180 200 QUANTITY (Millions of pounds) The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry is in the long