Answer to Question #90675 in Macroeconomics for ISABEL CIESLAR

Question

The wholesale price of large shell eggs peaked at $2.49 a dozen on May 29, up from $1.20 a dozen at the beginning of the year. (…) Avian flu, which first appeared in the United States in December, has devastated the nation’s turkey and laying hen flocks. (…) Trends like the Paleo diet, with its emphasis on protein, and the U.S.D.A.’s recent decision to remove limits on cholesterol from its Dietary Guidelines are creating a voracious appetite for eggs.

Answer 1

All Else Equal, What Will Happen To The Equilibriuum price and quantity in the market of eggs?

the graph shows the change in demand, quantity and price of eggs. Following an increase in demand and an increase in the price of eggs, the supply will increase. Naturally, the proposal will increase due to the import of eggs from countries where there is no bird flu.