8. Short-run and long-run effects of a shift in demand Suppose that the tofu industry is initially operating in longrun equilibrium at a price level of $5 per block of tofu and quantity of 100 million blocks per year. Suppose a top medical journal publishes research that animalalternative protein sources such as tofu could decrease your expected lifespan by 3 years. The publication is expected to cause consumers to demand V tofu at every price. In the short run, firms will respond by V Shift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of the publication. 10 O Supply Demand O 7 6 Supply 5 PRICE (Dollars per block) 3 Demand 0 20 40 60 80 100 120 140 160 180 200 QUANTITY (Millions of blocks)In the long run, some firms will respond by V until Shift the demand curve, the supply curve, or both on the following graph to illustrate both the short-run effects of the publication and the new.r long- mn equilibrium alter firms and consumers finish adjusting to the news. 10 O Supply Demand Co O 6 Supply PRICE (Dollars per block) Demand NJ 0 0 20 40 60 80 100 120 140 160 0 180 200 QUANTITY (Millions of blocks) The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry is in the long run.The publication is expected to cause consumers to demand 7 tofu at every price. In the short run, firms will respond by Shlft the demand curve, the supply curve, or bath on the I staph to illustrate these short-run effects of the publication. The publication is expected to cause consumers to demand V tofu at every price. In the short run, firms will respond bv v producing less tofu and running at a loss ' ! graph to illustrate these short-run effects of the publication. producing the same amount of tofu and running at a loss producing the same amount of tofu and earning positive profit producing more tofu and eaming positive profit entering the industry exiting the industry In the long run, some firms will respond by V until producing more tofu and earning positive prot producing less tofu and running at a loss Shift the demand curve, the suppl}r curve, 0 short-run effects of the publication and the new long- run equilibrium 336' fir ms and consumers ft producing less tofu and earning positive prot exiting the industry entering the industry 1o producing more tofu and running at a loss ' In the long run, some firms will respond by until tofu populations grow large enough to support more firms owing graph to illustrate both the short-run effects of the publication and the new long- consumer demand returns to its original level the news. each firm in the industry is once again earning zero profit new technologies are discovered that lower costsdownward sloping upward sloping o 20 40 so so 100 120 140 150 130 200 QUANTITY (Millions of blocks) horizontal vertical The new equilibrium price and quantity suggest that the shape ofthe longrun supply curve in this industry is V in the long run