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  • Presented By: Raghav Pokharel: Market Forces of Demand and Supply

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    1) Chicken consumption in the US dramatically increased from 1940 to 1990 as chicken became more affordable and tastes changed. 2) Both demand and supply curves shifted over this period. Demand increased due to higher incomes, different tastes, and advertising. Supply increased due to new technologies, breeding methods, and more producers entering the market. 3) In the long run, as supply continued expanding to meet increased demand, chicken prices declined from P1 to P3, while quantities rose from Q1 to Q3.

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    1) Chicken consumption in the US dramatically increased from 1940 to 1990 as chicken became more affordable and tastes changed. 2) Both demand and supply curves shifted over this period. Demand increased due to higher incomes, different tastes, and advertising. Supply increased due to new technologies, breeding methods, and more producers entering the market. 3) In the long run, as supply continued expanding to meet increased demand, chicken prices declined from P1 to P3, while quantities rose from Q1 to Q3.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
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    8 views9 pages

    Presented By: Raghav Pokharel: Market Forces of Demand and Supply

    Uploaded by

    Raghav Pokharel
    1) Chicken consumption in the US dramatically increased from 1940 to 1990 as chicken became more affordable and tastes changed. 2) Both demand and supply curves shifted over this period. Demand increased due to higher incomes, different tastes, and advertising. Supply increased due to new technologies, breeding methods, and more producers entering the market. 3) In the long run, as supply continued expanding to meet increased demand, chicken prices declined from P1 to P3, while quantities rose from Q1 to Q3.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
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    of 9

    Market Forces of Demand and Supply

    Presented By:
    Raghav Pokharel
    Reference Case:
    A Chicken In Every Pot
    OVERVIEW
    • Chicken was considered DEMANDCHI CHICKEN DEMAND IN
    (LBS)
    a luxury meat USA
    70.1
    • Beef rationes
    • Dramatic decline in real
    broiler price between
    1950 and 1970
    4
    • Steady, though not as
    2
    dramatic, decline in real
    prices from 1970 to
    1940 1960 1970 1990
    1990.
    YEAR
    Major Events Leading To Shift In Demand
    Curve
    • Change in S1
    consumer
    income P2

    • Change in taste
    P1
    and preferences

    D1 D2

    Q1 Q2
    What Is Going With Supply?
    P
    S1 S2

    P1
    P2

    D1

    Q1 Q2 Q
    Events Leading to Shift In Supply
    Curve
    Technology

    Shift in Supply Curve

    New Entrants
    Long Run Analysis Of Consumption Of
    Chicken

    P
    S1 S2

    P3
    P1

    D1 D2
    Q
    Q1 Q3
    Analysis
    • Comparative Static Analysis
    1. Short-run Analysis
    2. Long-run Analysis
    • Prolonged period of increase in demand
    causing changes in market adjustments
    THANK YOU

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