A 20-year maturity, 8.2% coupon bond paying coupons semiannually is callable in seven years at a call price of $1,110. The bond currently sells at a yield to maturity of 7.2% (3.60% per half-year). Required:
a. What is the yield to call?
b. What is the yield to call if the call price is only $1,060?
c. What is the yield to call if the call price is $1,110 but the bond can be called in four years instead of seven years?

answer; /// i do believe the correct answer is (possession utility);

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.