According to an article in the Wall Street Journal, restaurant
chains, including Subway, McDonald’s, and Chick-fil-A,
have begun serving only chickens that were raised without being fed antibiotics. Using this method of raising
chickens increases their cost. Suppose that consumers
react to the news of restaurants selling antibiotic-free
chicken sandwiches by increasing their demand for the
sandwiches. Can you tell whether economic surplus will
increase in the market for chicken sandwiches? Use a
graph of the market for chicken sandwiches to illustrate
your answer.
Source: Jacob Bunge, “Perdue Farms Eliminated Antibiotics from
Chicken Supply,” Wall Street Journal, October 6, 2016.