(Solved): 6. Short-run and long-run effects of a shift in demand Suppose that the tuna industry is in long-ru ...

6. Short-run and long-run effects of a shift in demand Suppose that the tuna industry is in long-run equilibrium at a price of \( \$ 5 \) per can of tuna and a quantity of 500 million cans per year. Suppose WebMD claims that a protein found in tuna will increase your expected lifespan by 5 years. WebMD's daim will cause consumers to demand tuna at every price. In the short run, firms will respond by Shit the demand curve, the supply curve, or both on the following graph to illustrate both the short-run effects of WebMD's claim and the new longrun equilibrium atter firms and consumers finish adjusting to the news. The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry is in the long run.