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Suppose that the chicken industry is in long-run equilibrium at a price of $5 per pound of chicken and a quantity of 450 million pounds

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Suppose that the chicken industry is in long-run equilibrium at a price of $5 per pound of chicken and a quantity of 450 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 demand curve, the supply curve, or both on the following graph to llustrate these short-run effects of the Surgeon General's report. 10 Suppt Demand Supply and until In the long run, some firms will respond by Shift the demand curve, the supply curve, or both on the following graph 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 Demand Supply n Demand Supply 0 0100 270 30 40 540 30 720 810 00 QUANTITY (Millions of pounds) in the long The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry is run

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