Graincorp, a u. s. agricultural company, produces corn syrup at a plant in iowa on september 13, 2017. it sells the corn syrup to crunchy's for use in the production of cereal that will be made in the united states in 2017. (note: focus exclusively on whether production of the corn syrup increases gdp directly, and ignore the effect of production of the cereal on gdp.)

The answer is: Graincorp's production is not included in the GDP

Explanation:

The GDP includes the total production of final and legal goods and services. Since Graincorp produces corn syrup, which is later used by Crunchy's to produce breakfast cereal, we can consider corn syrup as an intermediate good. Intermediate goods are not included in the GDP.

The selling price of Crunchy's cereal should already include the value of all its inputs (including corn syrup).

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.