Wednesday, February 4, 2015

Consumer Preferences and Changes in Quantity Supplied

The New York Times reports that increased in consumer preference for more humanely raised hogs, some hog farmers are increasing the amount of hogs raised to meet this increase in demand.  This would be what the demand and supply model would conclude.  Note that the change in consumer preferences for humanely raised hogs is shifting the demand for pork out to the right and that suppliers are increasing the quantity supplied as a result of the higher prices for this type of product.

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