Bird Flu Hits Malaysia A deadly strain of bird flu that has killed many people in Asia this year has hit Malaysia. The outbreak is a blow for Malaysias thriving poultry industry. Neighboring countries which import live chickens and ducks from Malaysia suspended all imports, driving poultry stocks down. The government has confirmed the continuing ability of the H5N1 virus to transmit to people. To avoid the spread of the disease, the chickens and ducks in the areas affected by the H5N1 virus are culled. This has reduced the supply of chicken in the country. The bird flu scare has caused a drastic change in consumer diet from chicken to other substitutes such as other meats and fish. This has resulted in lower chicken production that has further plunged the poultry industry into uncertainty. The drop in business may also force some chicken farmers to close shop, further decreasing supply. The government is now concerned over a looming shortage in supply of chicken when consumption returns to normalcy. Farmers are adjusting their production following the low demand by reducing the import of chicks to avoid huge losses. Some countries like Singapore and Indonesia have banned the import of chicken and poultry from Malaysia. This would further restrict supply. 1. Explain graphically how the outbreak of the bird flu disease affected the market demand and supply of chicken.
Bird Flu Hits Malaysia A deadly strain of bird flu that has killed many people in Asia this year has hit Malaysia. The outbreak is a blow for Malaysias thriving poultry industry. Neighboring countries which import live chickens and ducks from Malaysia suspended all imports, driving poultry stocks down. The government has confirmed the continuing ability of the H5N1 virus to transmit to people. To avoid the spread of the disease, the chickens and ducks in the areas affected by the H5N1 virus are culled. This has reduced the supply of chicken in the country. The bird flu scare has caused a drastic change in consumer diet from chicken to other substitutes such as other meats and fish. This has resulted in lower chicken production that has further plunged the poultry industry into uncertainty. The drop in business may also force some chicken farmers to close shop, further decreasing supply. The government is now concerned over a looming shortage in supply of chicken when consumption returns to normalcy. Farmers are adjusting their production following the low demand by reducing the import of chicks to avoid huge losses. Some countries like Singapore and Indonesia have banned the import of chicken and poultry from Malaysia. This would further restrict supply. 1. Explain graphically how the outbreak of the bird flu disease affected the market demand and supply of chicken.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
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Transcribed Image Text:Bird Flu Hits Malaysia
A deadly strain of bird flu that has killed many people in Asia this year has hit Malaysia. The outbreak is a blow
for Malaysias thriving poultry industry. Neighboring countries which import live chickens and ducks from Malaysia
suspended all imports, driving poultry stocks down.
The government has confirmed the continuing ability of the H5N1 virus to transmit to people. To avoid the spread of
the disease, the chickens and ducks in the areas affected by the H5N1 virus are culled. This has reduced the supply
of chicken in the country.
The bird flu scare has caused a drastic change in consumer diet from chicken to other substitutes such as other
meats and fish. This has resulted in lower chicken production that has further plunged the poultry industry into
uncertainty. The drop in business may also force some chicken farmers to close shop, further decreasing supply.
The government is now concerned over a looming shortage in supply of chicken when consumption returns to
normalcy. Farmers are adjusting their production following the low demand by reducing the import of chicks to avoid
huge losses. Some countries like Singapore and Indonesia have banned the import of chicken and poultry from
Malaysia. This would further restrict supply.
1. Explain graphically how the outbreak of the bird flu disease affected the market demand and supply of
chicken.
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