A drill press was purchased 4 years ago for $40,000. Its estimated salvage value after 7 years was $5000. The press can be sold for $15,000 today, or for $12,000, $9000, or $6000 at the ends of each of the 3 years. The annual operating and maintenance cost for the next 3 years will be $2700 for this year and then will increase by $800 per year. What are the relevant cash flows for this machine?

answermarket demand;

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.

the correct answer will be d