An economy consumes 1 million chickens each year. A new technology in raising chickens lowers the price of each chicken from $50 to $40. Suppose the economy still consumes 1 million chickens each year at the lower price. Do you agree that since the consumers pay $10 million less, the national saving due to the change in price equals $10 million?
An economy consumes 1 million chickens each year. A new technology in raising chickens lowers the price of each chicken from $50 to $40. Suppose the economy still consumes 1 million chickens each year at the lower price. Do you agree that since the consumers pay $10 million less, the national saving due to the change in price equals $10 million?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![An economy consumes 1 million chickens each
year. A new technology in raising chickens lowers
the price of each chicken from $50 to $40.
Suppose the economy still consumes 1 million
chickens each year at the lower price. Do you
agree
that since the consumers pay $10 million
less, the national saving due to the change in
price equals $10 million?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3d613177-1fa2-4948-8e11-da575ea46d64%2Fc00c24bf-4681-490c-9ca8-d691b74db235%2Fc2yekaf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:An economy consumes 1 million chickens each
year. A new technology in raising chickens lowers
the price of each chicken from $50 to $40.
Suppose the economy still consumes 1 million
chickens each year at the lower price. Do you
agree
that since the consumers pay $10 million
less, the national saving due to the change in
price equals $10 million?
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