An area can be irrigated by pumping water from a nearby river. two competing installations are being considered. the marr is 12% per year and electric power for the pumps costs $0.06 per kwh. 1 horsepower (hp) equals 0.746 kw. at what level of operation (hours per year) would you be indifferent between the two pumping systems? if the pumping system is expected to operate 2,000 hours per year, which system should be recommended?

answer( isp );

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.