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8 . Short-run and long-run effects of a shift in demand Suppose that the perfectly competitive shrimp industry is in long-run equilibrium at a price of $3 per kilogram of shrimp and a quantity of 600 million kilograms per year. Suppose Health Canada issues a report saying that eating shrimp is bad for your health. Health Canada's report will cause consumers to demand shrimp 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 Health Canada'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. ? Supply Demand Supply w PRICE (Dollars per kilogram) Demand 200 400 600 800 1000 1200 QUANTITY (Millions of kilograms) 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 Health Canada's announcement and the new long-run equilibrium after firms and consumers finish adjusting to Health Canada's announcement. (? Supply Demand Supply PRICE (Dollars per kilogram) N I Demand 200 400 600 800 1000 1200 QUANTITY (Millions of kilograms) Assuming the long-run price and quantity are as you found in the preceding problem, the shrimp industry is