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Short-run and long-run effects of a shift in demand Suppose that the chicken industry is in long-run equilibrium at a price of $5 per pound of chicken and a quantity of 200 million pounds per year. Suppose that WebMD claims that the bacteria found in chicken will decrease your expected lifespan by 2 years. WebMD’s claim will cause consumers to demand _______ chicken at every price. In the short run, firms will respond by __________________________.

Respuesta :

Answer:

Less

Reducing supply

Explanation:

Because of the announcement by WebMed, people would demand less chicken ,which would cause demand to fall and the demand curve would shift to the left as a result.

Suppliers would respond by reducing supply, supply would fall and the supply curve would shift to the left.

As a result, equilibrium price and quantity would fall.

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