Economics Analysis when Chicken food price is going up Term Paper

Economics Analysis when Chicken food price is going up - Term Paper ExampleThe intersection point of the demand and supply curves is called the equilibrium point (Thomas & Maurice 2008).In the given scenario, there is an enlarge in the infix cost for products made from yellowish. The input cost argon higher as the chicken feed price goes up. There are certain input costs and the increase in their prices results in a reduction of the supply of the products in which they are apply. An increase in input cost causes the supply curve to move towards left. In other words, an increase in input costs ignores the overall profit to the supplier and hence, the supplier reduces the level of supply. The quantity demanded, as a result, does non satisfy and remains unchanged. In our case, the result of an increase in chicken feed prices will reduce the chicken output. Relating this to the Restaurant industry, the reduced supply of chicken will result in higher prices of chicken and eggs relat ed cuisines like Burgers, Omelets, Sandwiches and most of the baked items like cakes. The equilibrium price in the eating place industry for the foods containing eggs goes up due to the shift in the demand curve. The equilibrium quantity, however, has shown a declining trend.The growing in feed cost moves the supply curve to the left. The reduced supply of chicken will take away to change in the price and demand of certain products. The price of all products in which chicken is used will go up and the quantity will also be reduced as shown in the figure above.Assuming Beef as a major substitute to chicken, it is obvious that with the rise in prices of chicken products, the demand for substitutes like beef-made products will rise. The demand curve shifts towards right (Krugman & Wells 2009). The consumer demand to adjudge meat products will then be satisfied by the consumption of beef hence an increase in the demand for beef boosts up.The poultry industry will definitely be affec ted adversely due to the rise in