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Suppose that the tuna industry is in long-run equilibrium at a price of $5 per can of tuna and a quantity of 150 million cans per year. Suppose that the Centers for Disease Control (CDC) announces that a chemical found in tuna is causing bacterial infections to spread around the world. The CDC's announcement will cause consumers to demand tuna at every price. In the short run, firms will respond by
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Suppose that the tuna industry is in long-run equilibrium at a price of $5 per can of tuna and a qua...
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