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There is currently concern that the US economy will fall into a recession, during which people's incomes fall. In addition, the price of raw chicken
There is currently concern that the US economy will fall into a recession, during which people's incomes fall. In addition, the price of raw chicken meat is rapidly increasing. Suppose that dining at fast-food chicken restaurants is an inferior good and the economy enters a recession, and the price of raw chicken meat rises. You will be asked several questions about this situation. Do NOT draw a graph; instead please respond to the questions in an essay form. Explain how the market (that is, the demand and supply) for fast-food chicken meals was affected. Explain the effect on the equilibrium price and quantity of fast-food chicken meals. Suppose that the price of raw chicken meat did not change. Explain what THEN would have been the effect on the equilibrium quantity, the efficient quantity, and the producer surplus from fast-food chicken meals
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