There are two techniques of egg production: free range (where hens roam around the farm) or factory (where hens are fed and watered in wire cages) . The free range technique has a much more elastic supply curve than the factory technique. When the demand for eggs falls:
A) egg production using the factory technique falls less than with the free range technique.
B) egg production using the factory technique falls more than with the free range technique.
C) the production using both techniques falls by the same amount.
D) the factory egg producers supply curve shifts inward.
E) the free range egg producers supply curve shifts inward.
Correct Answer:
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