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 175 million pounds per year. Suppose a leading foodie video blogger raises awareness for a scholarly article that links seitan consumption to healthy skin.

The viral video is expected to cause consumers to demand (LESS/MORE) seitan at every price. In the short run, firms will respond by ______________

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 175 million pounds per year. Suppose a leading foodie video blogger raises awareness for a scholarly article that links seitan consumption to healthy skin. The viral video is expected to cause consumers to demand V seitan at every price. In the short run, firms will respond by V entering the industry raph to illustrate these short-run effects of the viral video. producing the same amount of seitan and running at a loss '7 producing the same amount of seitan and earning positive profit 0 producing less seitan and running at a loss producing more seitan and earning positive profit exiting the industry ---------+ PRICE (Dollars per pound) In the long run, some firms will respond by until producing less seitan and earning positive profit Shift the demand curve, the supply curve, or exiting the industry port-run effects of the viral video and the new long- run equilibrium after firms and consumers fir entering the industry producing less seitan and running at a loss producing more seitan and running at a loss producing more seitan and earning positive profit 10 9 Supply Demand 8 7 6 Supply 5 PRICE (Dollars per pound) A 3 Demand N 0 35 70 105 140 175 210 245 280 315 3 QUANTITY (Millions of pounds)