The Argentine peso was fixed through a currency board at Ps1.00​/$ throughout the 1990s. In January 2002 the Argentine peso was floated. On January​ 29, 2003 it was trading at Ps3.25​/$. During that one year period​ Argentina's inflation rate was 20​% on an annualized basis. Inflation in the United States during that same period was 2.2​% annualized. Required:

a. What should have been the exchange rate in January 2003 if purchasing power parity held?

b. By what percentage was the Argentine peso undervalued on an annualized basis?

c. What were the probable causes of undervaluation?

you have to put the parentheses like this:

in fact, you have to perform the operation inside parentheses first, and then proceed in order:

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.