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It has been a tough year in the poultry business, with supply outpacing demand and feed-grain prices rising substantially. But producers are hoping all that changes when the summer cook-out season starts. The seasonal upswing in chicken consumption, along with the anticipated jump in spot-market poultry prices, could bring some relief to producers whose profit margins have been slashed by surging corn and soybean-meal costs. Rising feed-grain prices, accelerated by the diversion of corn to make ethanol, have pushed up the cost of producing a live chicken by as much as 65% over the past two years. Three factors make analysts more optimistic: Companies are cutting production, weekly egg-set numbers are declining (egg sets are fertile eggs placed in incubators), and prices are responding positively to the decreasing supply. The production slowdown is a response to the surge in feed-grain prices last fall. Profit margins at producers will not improve unless spot-market prices for chicken move up fast enough to cover costs paid for corn and soybean meal to feed chicken flocks. Production cutbacks and seasonal demand have helped fuel a 20-cent increase in boneless, skinless breast-meat prices to $1.46 a pound. Prices are expected to reach at least $1.80 by summer 2008.a. Use demand and supply analysis to illustrate the changes in chicken prices described in the above article.
Simultaneous changes in supply and demand affect equilibrium price and quantity in various ways, depending on the relative magnitudes of the changes in supply and demand. Equal increases in supply and demand, for example, leave equilibrium price u..
One of the key features of the law that created the Federal Reserve System was that the Fed was to remain autonomous from the influence of the President and Congress. Recently, there have been calls that the Fed lose autonomy and even eliminated a..
International Drilling Company segments its foreign markets by the income levels of a country's population. This firm segments on what basis?
The government has to go into the market and buy output, which it then puts in a warehouse for indefinite storage. the government must buy units of output to reach its price target the price support program raises profit per firm to.
Demonstrate that removing the subsidy will make consumers worse off but will nevertheless improve society's economic welfare.
If gross investment is not large enough to replace capital that depreciates in particular year, is net investment greater or less than zero? What happens to our production possibilities?
1nbsp below are six statements.nbsp indicate whether each one pertains to microeconomics mic or macroeconomics
Discuss the differences between behavioral and equilibrium relationships and explain the basic Idea behind the Solow model and its relationship with technological advance. What will add to capital stock and detract from it.
1-year T-bill rates are expected to steadily increase by 150 basis points per year over the next 6 years. Determine the required interest rate on a 3-year T-bond and a 6-year T-bond if the current
If the price of one good changes, what part of the change in demand is due to the substitution effect, and what part is due to the income effect?
Because bagels and cream cheese are often eaten together, they are complements. We observe that both the equilibrium price of cream cheese and the equilibrium quantity of bagels have risen. What could be responsible for this pattern-- a fall in the p..
Movie theaters generally charge the same ticket price for all movies with evening show times, regardless of popularity. This pricing strategy causes surpluses for unpopular films & shortages for popular films.
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