This table shows the balance in an account if monthly deposits of $10 were compounded monthly. Annual
Interest
Value at end of:
5 years
10 years
15 years
20 years
0%
$600
$1,200
$1,800
$2,000
2%
$630
$1,327
$2,097
$2,948
4%
$663
$1,472
$2,461
$3,668
6%
$698
$1,639
$2,908
$4,620

Suppose you plan to save $10 each month, as indicated in the table. You can either deposit it into a savings account at 6% interest or you can put it under your mattress for safekeeping. How much more money will you have at the end of 5 years if you choose the savings account instead of your mattress?
a.
$698
c.
$98
b.
$439
d.
$600

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.