Homework (Ch 14) 8. Short-run and long-run effects of a shift In demand Suppose that the seitan industry is initially operating in long-run equilibrium at a price level of $5 per pound of seitan and quantity of 225 million pounds per year. Suppose a leading foodie video blogger raises awareness for a scholarly article that links seitan consumption to premature hair loss and unhealthy skin. The viral video is expected to cause consumers to demand seitan at every price. In the short run, firms will respond by Shift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of the viral video. 10 O Supply Demand Supply s per pound) 6 O BMOLO hp10 Supply Demand Supply PRICE (Dollars per pound) Demand N 45 90 180 225 270 315 360 405 450 QUANTITY (Millions of pounds) ? MO O hpCENGAGE | MINDTAP Homework (Ch 14) In the long run, some firms will respond by until Shift the demand curve, the supply curve, or both on the following graph to illustrate both the short-run effects of the viral video and the new long- run equilibrium after firms and consumers finish adjusting to the news. 10 O Supply Demand CO Supply PRICE (Dollars per pound) A w Demand BMODO\fHomework (Ch 14) O ch Supply En PRICE (Dollars per pound) Demand N 0 45 90 135 180 225 270 315 360 405 450 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 run. Grade It Now Save & Continue Continue without saving B MOD O 4 Ap hp