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Define “Partial Equilibrium Analysis” and “General Equilibrium” and answer the following question: A major source of chicken feed in the United States is anchovies, small fishes that can be scooped out of the ocean at low cost. Every 7 years, when the anchovies disappear to spawn, producers must turn to grain, which is more expensive, to feed their chickens. What is likely to happen to the costs of chicken when the anchovies disappear? What are substitutes for chicken? How are the markets for the substitutes affected? Name some complements to chicken. How are the markets for complements affected? How might the allocation of farmland be changed as a result of the disappearance of anchovies?
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