University Studies Have Shown That That Chickens Grow 2 Percent

question 337

Multiple Choice

University studies have shown that that chickens grow 2 percent larger when a red mitten is placed in their cage and Vivaldi is played in the coop. This leads to a reduction in feed costs of $60 million a year. In the chicken market, the

• A) demand curve shifts to the right.
• B) supply curve shifts to the right.
• C) price will rise.
• D) quantity sold will fall.

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Definitions:

Unit Elastic

A situation in which a one percent change in price causes an equal percentage change in quantity demanded or supplied.

Very Inelastic

Describes a situation where the demand or supply for a product is barely affected by changes in the price.

Calculate Elasticity

entails determining the degree to which the quantity demanded or supplied of a good changes in response to a change in its price.

Unit Elastic

A situation in which the percentage change in quantity demanded or supplied is equal to the percentage change in price.