Suppose that in Australia, the government allows private ownership of chickens but not of cows. If the people of Australia permanently increase their desire to purchase more chicken and beef, in the long run, we would expect
A) the population of chickens to rise and the population of cows to fall.
B) the population of cows to rise and the population of chickens to fall.
C) the populations of both chickens and cows to increase.
D) both chickens and cows to become extinct in Australia unless the government places the animals on the endangered species list.

Question

Quizplus · Accepted Answer

The increased demand for chicken will lead to a higher price for chicken, which will make it more profitable to raise chickens. This will lead to an increase in the population of chickens. The increased demand for beef will not have any effect on the population of cows, since the government does not allow private ownership of cows.

Suppose That in Australia, the Government Allows Private Ownership of Chickens