Question 4:

In the first months of 2023 bird flu in the United States has dramatically decreased the supply of eggs in the country. The laying hen population is down 5.8% compared to 2021 and egg production is down 6.6% during the period. At the same time, the demand for eggs is considered to be inelastic. Source: Hicks, Isabel (2023). See link: https://billingsgazette.com/business/bedeviled-eggs-bird-flu- inflation-bump-egg-prices-strain-supply/article_66b91638-7e7d-5490-9cf9-2a6d48df53b8.html

If the demand for eggs is price-inelastic, a reduction in egg production will increase farmers' revenue. Explain why this is so. Use a diagram to support your answer. (5 marks) Include at least four (4) authored and scholarly/reliable references for your assignment. E.g. Do not use "Wikipedia" as it is not a reliable source as anyone can contribute to or change its information.