uppose that the shrimp industry is in long-run equilibrium at a price of $5 per pound of shrimp and a quantity of 150 million pounds per year. Suppose that the Centers for Disease Control (CDC) announces that a chemical found in shrimp is causing bacterial infections to spread around the world. The CDC's announcement will cause consumers to demand shrimp at every price. In the short run, firms will respond by.

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Business

Jocelynn Huynh

3 September, 16:16

uppose that the shrimp industry is in long-run equilibrium at a price of $5 per pound of shrimp and a quantity of 150 million pounds per year. Suppose that the Centers for Disease Control (CDC) announces that a chemical found in shrimp is causing bacterial infections to spread around the world. The CDC's announcement will cause consumers to demand shrimp at every price. In the short run, firms will respond by.

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Patrick Townsend · Answer 1

Answer: Producing less shrimps and look for a substitute to shrimps that they can supply to the market.

Explanation: The announcement made by the Centers for Disease Control (CDC) regarding the chemical found in shrimps causing bacterial infections to spread around the world will affect the market thereby reducing the demand for shrimps.

Firms producing shrimps in the short run will reduce their supply of shrimps thereby running at a loss and look into ways of getting substitute products.