Tobi owns a perpetuity that will pay $1,500 per year, starting one year from now. He offers to sell you all of the remaining payments after the first 25 annual payments have been paid. What price should you offer him for payments 26 onward if you desire a rate of return of 8 percent?

d. all of the above are true.

answer///the factor market;

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.