A company faces the following demands during the next four periods: 20, 10, 13 and 15 units. The unit production cost during each period is as follows: period 1: $10; period 2: 17; period 3: $15, period 4: $18. A holding cost at the rate of $2 per unit is assessed against each period’s ending inventory. At the beginning of period 1, the company has 3 units in the inventory. Because of the restriction of the warehouse, at the end of each period, there could be at most 5 units in inventory. a. Please have an LP model to minimize the total cost while meeting all demands on time.
b. Please solve the LP with Lindo, Excel or GUROBI.

happiness is the correct luck

explanation:

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.