Suppose that a monthly Netflix subscription is an item in the CPI market basket. Netflix raises its subscription price and also places a strict new limit on the number of movies that can be viewed per month. The BLS makes no adjustment for the quality change. Which statement is correct about the BLS's response to Netflix's action? Question 3 options: The value of the CPI rises, but this understates the increase in the true cost of living since the quality of a subscription fell. The value of the CPI is unchanged, which is appropriate. The CPI accurately captures the effect of Netflix's actions on the cost of living. The value of the CPI rises, and this overstates the increase in the true cost of living.

answer the law of increasing costs;

answer/// sequence of operations that requires the longest time for completion';

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.