Question

Questions: Chick-fil-A’s "eat Mor Chikin" campaign features three cows holding signs that say things like "Save the Cows, eat more Chikin!"
A. If consumers ate more chicken and less beef, what would happen to the price of chicken and why? Illustrate your answer with the supply and demand curves for chicken.


B. If consumers ate more chicken and less beef, what would happen to the price of BEEF and the quantity of beef supplied? W


2. What effect does establishing a minimum wage have on the market for unskilled labor? Illustrate your answer showing clearly (marked in RED) what happens to the employment of low skilled workers.


3. Given your answer to (2) above, what would you expect will happen to the demand for self-check-out kiosks when the minimum wage increases? Explain and illustrate.


4. How will free international trade affect people’s standard of living AND WHY?

Answer 1

The. The relationship between demand and price for a product is inversely proportional. Thus, an increase in demand means a decrease in price. If consumers start to eat more chicken meat than beef, it means that the demand for chicken meat has become higher, consequently the price of chicken meat has become lower.

B. On the other hand, the demand for beef would decrease, which means that the price of beef would increase, since demand and price are inversely proportional to the price.

2. The establishment of a minimum wage attracts unskilled and low-skilled workers and motivates them to seek employment. This is because the minimum wage establishes the lowest wage amount that must be legally paid to someone regardless of their qualification. With this, the unskilled worker can guarantee that he will receive a fixed amount for his work.

3. In this case, the demand for self-check-out kiosks would increase, because with the inclusion of unskilled workers in the labor market, the demand for people to receive money would increase, making self-check-out kiosks more in demand.

4. It will allow people to have wide access to products, including those that are not manufactured in their country of origin, since this type of trade allows the exchange of goods and services between countries, without any legal restrictions that prevent them. However, people from underdeveloped countries will suffer, as their currencies are devalued, which will allow people from developed countries to buy their products, while people from underdeveloped countries cannot buy.