How Does Improved Technology in the Chicken Industry Affect Market Equilibrium?

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AI Thread Summary
Improved technology in the chicken industry is likely to shift the demand curve due to increased efficiency and lower production costs. The discussion explores how various factors, including consumer incomes and beef prices, influence market equilibrium. A decrease in consumer incomes would typically reduce demand, while improved technology would likely increase supply. The participant suggests that the correct answer to the homework question is related to a decrease in consumer incomes. Overall, the impact of technology on the chicken market is significant, leading to changes in equilibrium.
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Homework Statement



Refer to the above graph, which shows the market for chicken where D1 and D2 represent different demand curves. A change from E1 to E2 is most likely to result from:
Answer


a)a decrease in consumer incomes.


b)an increase in the wages of chicken workers.


c)an increase in the price of beef products.


d)improved technology in the chicken industry.



The Attempt at a Solution




the graph is in the attachment.

I'm not sure what this would be but I guess it couldn't be c since on the graph it shows that the price is lowered.
 

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Shifts in the demand curve come from all things that aren't the price of chicken.

Which of those four things would decrease consumer demand of chicken?
 
so it would be a decrease in consumer incomes.
 
That would be my guess.
 

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