During the 1990s positive technological change in the production of chicken caused the price of chicken to fall.Holding everything else constant,how would this affect the market for pork (a substitute for chicken)?
A)The supply of pork would increase and the equilibrium price of pork would decrease.
B)The demand for pork would decrease and the equilibrium price of pork would decrease.
C)The demand for pork would increase because consumers could afford to buy more chicken and pork.
D)The demand for pork would decrease and the equilibrium price of pork would increase.

Question

Quizplus · Accepted Answer

When the price of chicken falls due to positive technological changes, consumers are likely to substitute chicken for pork, leading to a decrease in the demand for pork. As demand decreases, the equilibrium price of pork would also decrease.

During the 1990s Positive Technological Change in the Production of Chicken