Strapped for cash, your neighbour makes you the following offer.   He will pay you back the money he borrows today over the next 11 years.  He will make yearly payments with the first payment being for $1041 at the end of this year.   The payments will grow by 18% every year thereafter.   If the appropriate discount rate is 4%, how much would you be willing to lend your neighbour today? (Note: retain at least four places of a decimal in your calculation)

answer; blank(1); /// whitelisting; blank(2); // blacklisting;

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.