Title: QUIZ: The Market for Eggs: How Prices Are Hatched -- Page One Economics®
Course: Recommended Resources for AP Micro from FRE > Section: Unit 3: Production, Cost, and the Perfect Competition Model

Q: What primarily determines the price of eggs in the market?
- Government regulations on egg production
- The interaction of supply and demand
- The cost of transporting eggs to grocery stores
- The nutritional value of eggs compared with other foods
A: The interaction of supply and demand

Q: What role does the Egg Clearinghouse, Inc. (ECI) play in the egg market?
- It sets the retail price of eggs for grocery stores.
- It ensures that eggs meet safety and quality standards.
- It allows suppliers to buy and sell eggs in large volumes.
- It provides financial assistance to egg farmers.
A: It allows suppliers to buy and sell eggs in large volumes.

Q: Why is the demand for eggs considered relatively inelastic?
- Eggs have few substitutes and are a small part of food budgets.
- Consumers always buy eggs in large quantities, no matter the price.
- Egg prices rarely change, so demand remains stable.
- Egg prices fluctuate seasonally, making demand unpredictable.
A: Eggs have few substitutes and are a small part of food budgets.

Q: Why is the short-run supply of eggs considered inelastic?
- Farmers can quickly increase production when prices rise.
- Egg-laying hens take several months to mature before producing eggs.
- Eggs can be stored for long periods, allowing farmers to adjust supply.
- Farmers can easily switch to producing eggs from other animals.
A: Egg-laying hens take several months to mature before producing eggs.

Q: How does inelastic supply and demand contribute to large price swings in the egg market?
- Small changes in supply or demand cause large changes in price.
- Egg prices remain stable due to government intervention.
- Consumers react quickly to price changes by reducing egg consumption.
- Farmers adjust production immediately to meet demand.
A: Small changes in supply or demand cause large changes in price.

Q: How has avian flu affected egg prices?
- It has led to a decrease in consumer demand for eggs.
- It has reduced the number of egg-laying hens, decreasing supply.
- It has made eggs safer to consume, increasing demand.
- It has increased the number of chickens available for egg production.
A: It has reduced the number of egg-laying hens, decreasing supply.

Q: Why do egg farmers rely on ECI when facing supply shortages?
- It allows them to borrow money to buy new hens.
- It helps them meet large orders when their own supply is insufficient.
- It provides government assistance during economic downturns.
- It ensures eggs are distributed equally among farmers.
A: It helps them meet large orders when their own supply is insufficient.

Q: In the long-run, why is the supply of eggs more elastic?
- Farmers can increase flock sizes, expand production, or enter the market.
- Egg prices stabilize over time, making production easier.
- Consumers start buying substitutes for eggs.
- Egg production becomes automated and no longer depends on hens.
A: Farmers can increase flock sizes, expand production, or enter the market.

Q: How does ECI influence the retail price of eggs?
- It determines government subsidies for egg producers.
- It establishes wholesale prices, which affect retail prices.
- It regulates the maximum price grocery stores can charge.
- It provides consumers with information about egg quality.
A: It establishes wholesale prices, which affect retail prices.

Q: What has been a key difference in the impact of avian flu on egg-laying hens versus broiler chickens?
- More egg-laying hens have been affected than broiler chickens.
- More broiler chickens have been affected than egg-laying hens.
- The impact has been equal on both egg-laying hens and broiler chickens.
- Broiler chickens have been more resistant to avian flu than egg-laying hens.
A: More egg-laying hens have been affected than broiler chickens.