(Solved): Suppose that the jackfruit industry is initially operating in iong-run equilibrium at a price level ...

Suppose that the jackfruit industry is initially operating in iong-run equilibrium at a price level of \( \$ 5 \) per pound of jackfruit and quantity of 150 million pounds per year. Suppose that the Food and Drug Administration (FDA) reports that compounds naturally occurring in jackdruit are linked to chronic iliness. The FDA's research is expected to cause consumers to demand Jacidruit at every price. In the short run, firms will respond by Shit the demand curve, the supply curve, or botil on the following graph to illiustrate these short-run effects of the FDA's research. Shift the demand curve, the supply curve, or both on the following graph to illustrate both the short-run effects of the FDA's research and the new long-run equilibrium after firms and consumers finish adjusting to the news. The new equilibrium price and quaritity suggest that the shape of the long-run supply curve in this industry is run.