Gerken company concluded at the beginning of 2018 that the company's ownership interest in dillco had increased to the point that it became appropriate to begin using the equity method to account for the investment. the balance in the investment account is $50,000 at the time of the change, and accountants working with company records determined that the balance would have been $75,000 if the account had been adjusted for investee net income and dividends as prescribed by the equity method. after implementing the change to the equity method, if financial statements were prepared: -net income and retained earnings will be higher by $25k-net income will be unchanged, and retained earnings will be higher by $25k-net income and retained earnings will be higher by $75k-the accounts will be unchanged because no adjustment is necessary

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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.