An ad in a newspaper reads: "available today only. friendly's appliances. clearance sale for all floor items. 75% off retail prices." joan ludwig arrived at friendly's about one hour after it opened and there were no appliances left. which of the following is true? a. friendly's has breached a contract and owes damages to joan. b. there is no breach of contract. c. joan has no rights of recovery because the contract was required to be in writing. d. there was no contract, but joan can recover on the basis of quasi contract. e. none of the above

where is the graph?

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.