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. Suppose that at the same time as the news report, you learn that the cost to feed your chickens has fallen. The news report and the change in feed cost will shift the demand curve to the ________and the supply curve to the _________.

Question

Quizplus · Accepted Answer

The news report likely increases demand (shifting the demand curve to the right) as it might make chicken more popular or perceived as healthier, increasing consumer desire. The decrease in feed cost reduces the cost of production for chickens, making it cheaper to supply chickens, thus shifting the supply curve to the right as well.

You Are a Farmer Who Raises Chickens and Sells the Eggs