Questions: Studies reveal that chickens grow quicker and larger when country music is played in the chicken cage. Providing music saves 60 million per year in chicken feed. In the chicken market, the Demand curve shifts out (to the right). Supply curve shifts out (to the right). Price will rise. Quantity sold will fall.

Studies reveal that chickens grow quicker and larger when country music is played in the chicken cage. Providing music saves 60 million per year in chicken feed. In the chicken market, the
Demand curve shifts out (to the right).
Supply curve shifts out (to the right).
Price will rise.
Quantity sold will fall.
Transcript text: Studies reveal that chickens grow quicker and larger when country music is played in the chicken cage. Providing music saves $60 million per year in chicken feed. In the chicken market, the Demand curve shifts out (to the right). Supply curve shifts out (to the right). Price will rise. Quantity sold will fall.
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Solution

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The answer is: Supply curve shifts out (to the right).

Explanation for each option:

  1. Demand curve shifts out (to the right): This option is incorrect. The demand curve represents the relationship between the price of a good and the quantity demanded by consumers. The information provided in the question pertains to the production side (supply) rather than consumer demand. Therefore, the demand curve would not be affected by the change in chicken feed costs.

  2. Supply curve shifts out (to the right): This option is correct. When chickens grow quicker and larger due to country music, it implies that the production process has become more efficient. This efficiency reduces the cost of production (saving $60 million per year in chicken feed), which would lead to an increase in the supply of chickens. An increase in supply is represented by a rightward shift of the supply curve.

  3. Price will rise: This option is incorrect. When the supply curve shifts to the right, it generally leads to a decrease in the equilibrium price, assuming demand remains constant. Therefore, the price of chickens would likely fall, not rise.

  4. Quantity sold will fall: This option is incorrect. A rightward shift in the supply curve typically results in an increase in the quantity sold, as more chickens are available at a lower price, assuming demand remains constant.

In summary, the correct answer is that the supply curve shifts out (to the right), leading to a decrease in price and an increase in the quantity sold.

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