Vignana corporation manufactures and sells hand-painted clay figurines of popular sports heroes. shown below are some of the costs incurred by vignana for last year: cost of clay used in production $ 76,000 wages paid to the workers who paint the figurines $ 99,000 wages paid to the sales manager's secretary $ 31,000 cost of junk mail advertising $ 48,000 what is the total of the conversion costs above? multiple choice $79,000 $175,000 $76,000 $99,000

answer; experimentation;

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.