Consider Country A that produces a large amount of chicken, keeping part of them for local consumption and exporting the surplus amount of chicken to other countries. Due to increasing price of chicken which adds to the higher living costs in Country A, there are increasing requests from the residents of Country A to make chicken more affordable. In Country A, chicken is the cheapest white meat consumed by almost every household. It is also the main source of protein with very few close substitutes. Rearing chicken also needs time and a substantial amount of land. The government of Country A has decided to ban the export of chicken to other countries to help the consumers of Country A. To provide further help to consumers of Country A, on top of the export ban, the government has decided to implement a price ceiling of chicken in Country A. Examine the chicken market and analyse the welfare effects of the price ceiling in the chicken market in Country A. Support your answer with a suitable chicken market diagram. Explain whether the chicken consumers in Country A better off with this price ceiling. Your diagram needs to reflect the correct price elasticity of demand and supply.
Consider Country A that produces a large amount of chicken, keeping part of them for local consumption and exporting the surplus amount of chicken to other countries. Due to increasing
In Country A, chicken is the cheapest white meat consumed by almost every household. It is also the main source of protein with very few close substitutes. Rearing chicken also needs time and a substantial amount of land.
The government of Country A has decided to ban the export of chicken to other countries to help the consumers of Country A.
To provide further help to consumers of Country A, on top of the export ban, the government has decided to implement a
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