Drag each label to the correct location on the image. Match the scenarios to the kind of brand extension that they represent.
A sandwich making company decides
to manufacture and serve desserts.
A corn flakes manufacturing company
decides to manufacture rice flakes.
An apparel manufacturing company
decides to manufacture travelling
suitcases.
An apparel manufacturing company
that designs clothes for adults
decides to manufacture kids' clothing.
A home appliance manufacturing
company decides to manufacture
furniture.
An electronic gadget manufacturing
company decides to manufacture
home appliances
Brand Extension
Line Extension

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.