You are a farmer who raises chickens and sells the eggs. A recent news report announced that eggs have a positive health benefit of improving immunity systems in humans.
-Refer to the figure above. As a result of the news report, the price of eggs will be ________than the current equilibrium price and the equilibrium quantity of eggs will be________ _ than the current equilibrium quantity.

Question

Quizplus · Accepted Answer

The news report creates an increase in demand for eggs due to the positive health benefit, causing the demand curve to shift to the right. This will result in a higher equilibrium price and quantity of eggs. Therefore, the price of eggs will be greater than the current equilibrium price and the equilibrium quantity of eggs will be greater than the current equilibrium quantity.

You Are a Farmer Who Raises Chickens and Sells the Eggs