Tomato puree produced in Mexico recently triggered a salmonella outbreak. (Salmonella is a bacterium that causes food poisoning and sometimes death.) Foods containing tomato puree were recalled and taken off grocery store shelves. Tomato puree in tins does not contain salmonella, is perfectly safe to eat, and was not recalled nor removed from stores. a. Consumers responded to the salmonella outbreak by reducing their purchases of everything containing tomato puree, including tomato puree in tins. What impact did their behavior have on the equilibrium price and equilibrium quantity sold of tomato puree in tins? Why? Draw a graph that supports your analysis. Label everything carefully.

The behavior of consumers reducing their purchases of all tomato puree, including tomato puree in tins, would decrease the demand for tomato puree in tins. This would lead to a shift in the demand curve to the left, resulting in a lower equilibrium price and quantity sold of tomato puree in tins.

b. Hunts is a popular brand of tomato puree in tins. Hunts ran an ad in last week's paper: "Hunts is not part of the tomato puree recall. Hunts is perfectly safe." Would you describe Hunt's behavior as a shift of or movement along the supply curve for Hunts tomato puree? Why?

Hunt's behavior can be described as a movement along the supply curve for Hunt's tomato puree. The ad stating that "Hunts is not part of the tomato puree recall" does not change any factors related to Hunt's tomato puree supply. It simply communicates information about its safety and distinguishes itself from other brands affected by the recall. A shift in the supply curve would occur if changes in production costs or technology affected Hunt's ability to supply tomato puree. However, since no such changes are mentioned, it can be concluded that Hunts' behavior represents a movement along the existing supply curve.