To compute the P. E.D. we divide the by. If a 10% increase in price decreases the quantity demanded by 12% the P. E.D. is __? What happens to PED coefficient as we move down the demand curve? Explain why audio tapes are more elastic in the long-run than in the short-run?

a

b

b

a

c

b

d

d

none of these are correct, as they are all sources of american law

a

answeraccounts;

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.