You purchase a call option on Sfr 10,000 for a premium of $.02 per unit, with an exercise price of Sfr 1.2234/$; the option will not be exercised until the expiration date, if at all. If the spot rate on the expiration date is Sfr 1.4/$, your net profit per unit, including the premium paid, is : Group of answer choices

reducing the scale of the market for a new product.

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.