Can some one specify the demand function for the chicken?
Demand is influenced by a number of things: utility function elasticity of demand substitutes price. For the general demand function of chicken, let’s think about each of the above. Utility: a rational person can only use so much chicken, right? As quantity increases to a certain point, there are diminishing marginal returns. Elasticity of demand: Demand is inelastic when, no matter the price, the same amount will be used. My teacher used insulin as an example. Within reason, no matter the price, patients will continue to buy the same amount because it is essential for them to live. Demand of chicken, on the other hand is more elastic. Elastic demand means that chicken is price-sensitive. Substitutes: Included in the reasoning that demand for chicken is elastic is the fact that there are many substitutes in the market. Think about all the other things a person could eat instead to get the same rough amount of nutritional value. Turkey, beef, tofu, eggs… Price: Price impacts demand, a
