The market for rhubarb is perfectly competitive and is initially in long-run equilibrium. Wanjoong's Farms is a typical firm in this market. A reputable, and widely reported, study finds that consumption of rhubarb is associated with an increased risk of kidney stones.

a.In the short run, how would this news impact the equilibrium price and quantity of rhubarb?

b.What impact would this news have on the price, quantity, and profits of Wanjoong's Farms in the short run?

c.What will happen in the market for rhubarb in the long run? Discuss the long-run equilibrium in the rhubarb market, and the long-run quantity and profits for Wanjoong's Farms. (Using the same pair of graphs you drew in parts a-b).