Below is budgeted production and sales information for Flushing Company for the month of December. Product XXX Product ZZZ
Estimated beginning inventory 30,900 units 19,000 units
Desired ending inventory 36,200 units 14,000 units
Region I, anticipated sales 331,000 units 271,000 units
Region II, anticipated sales 189,000 units 149,000 units

The unit selling price for product XXX is $4 and for product ZZZ is $16. Budgeted production for product ZZZ during the month is:

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.