Answer to Question #59472 in Microeconomics for 6688
2. The outbreak of Bird flu in 1997 resulted in the Hong Kong government ordering the culling of more than 1.5millions chickens. The culling of chickens was stimultaneously accompanied by consumers reducing their demand for life chickens due to the bird flu. Using demand and supply analysis, what was the impact on price and quantity in the market for life chickens? (Hint : There are 2 scenarios working at the same time)
2. If the culling of chickens was simultaneously accompanied by consumers reducing their demand for life chickens due to the bird flu, then according to decrease in supply and demand equilibrium price decreases, increases or may not change and equilibrium quantity decreases in the market for chickens.
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