Suppose the price of chicken falls, how will the makect react in the short run and long run?

Answer 1

Assuming this is a market shock, not a change in consumer tastes:

Short Run - People consume more chicken

Long Run - Unprofitable firms exit the market, supply of chicken will decrease, all things being equal the price and equilibrium quantity should return to normal.

Answer 2

Hello Niya B
You are much to late with that question.... Therefore your question is mute.... The price of chicken and other food products are going to continue to rise....The short run on that, people will survive for the short term... However when th recession arrives next year, 2007, there will be many hungry bellies going to bed at night...... Droughts and fuel are two major causes. Flooding another.... DEBT is a big reason. The Federal Goverment owes $8.5 trillion and going up daily at the rate of about $5 million a minute... The citizens of the U.S. owe 40 trillion plus and climbing. Each State and every major city is deep in debt. The list goes on and on...I believe that you can understand that this Nation is broke.....It is going to become much worse before it gets better... That recession will become a depression.
Prices are simply going up not down...
Have a good day.....