The Impact of Lower Wages on the Chicken Industry Market
How would the market for chicken be affected if corporate chicken farmers were successful in lowering wages in the industry?
1. A rightward shift in the demand curve for chicken
2. A leftward shift in the demand curve for chicken
3. A rightward shift in the supply curve for chicken
4. A leftward shift in the supply curve for chicken
The effect on the market for chicken if corporate chicken farmers succeeded in lowering wages in the chicken industry would be a leftward shift in the supply curve for chicken.
When corporate chicken farmers lower wages in the chicken industry, it becomes less attractive for workers to work in this industry. As a result, there will be a decrease in the number of workers available to produce chicken. This decrease in the labor force will cause a leftward shift in the supply curve for chicken.
With a lower supply of chicken, the equilibrium price of chicken will increase and the quantity demanded will decrease. Overall, this would result in a decrease in the market for chicken due to the lower supply caused by the lower wages in the industry.
The effect of lower wages on the market for chicken is primarily related to the supply curve. Lower wages lead to a decrease in the number of workers available to produce chicken, which in turn leads to a decrease in the supply of chicken. This decrease in supply causes a leftward shift in the supply curve. As a result, the equilibrium price of chicken increases and the quantity demanded decreases, leading to a decrease in the market for chicken.