Question

A major source of chicken feed in the United States is​ anchovies, small fish that can be scooped out of the ocean at low cost. Every 7​ years, when the anchovies disappear to​ spawn, producers must turn to​ grain, which is more​ expensive, to feed their chickens. What is likely to happen to the cost of chicken when the anchovies​ disappear? A. The cost of chicken will increase. B. The cost of chicken will not change. C. The cost of chicken will fall. D. The cost of chicken is unrelated to the cost of anchovies. What is a substitute for​ chicken? A. Chicken feed B. Fish C. Turkey D. Both B and C. How are the markets for these substitutes affected when the anchovies​ disappear?

Answer 1

Answer:

1.

A. The cost of chicken will increase

2.

D. Both B and C

Explanation:

In the absence of anchovies, The producer turns to more expensive item which increases the cost to produce the chicken . Increase in cost will definitely increase the price of the chicken.

The substitute of the chicken will be an meat product like fish, Turkey etc. Chicken meat is the input cost for chicken production