Answer Happy

Consider the market for beef. Graphically illustrate the impact on equilibrium price and quantity for each of the following scenarios. Instructions: Drag the appropriate line in the correct direction to show the effect on equilibrium price and equilibrium quantity. a. There is an increase in consumer income and beef is a normal good The Market for Beef Price of beef D S demand X
This will: increase equilibrium quantity and decrease equilibrium price decrease equilibrium quantity and decrease equilibrium price decrease equilibrium quantity and increase equilibrium price O increase equilibrium quantity and increase equilibrium price
b. There is an increase in the price of chicken The Market for Beef Price of beef X O S line 3 X O
This will: Ⓒ decrease equilibrium quantity and increase equilibrium price. O increase equilibrium quantity and increase equilibrium price. O decrease equilibrium quantity and decrease equilibrium price. O increase equilibrium quantity and decrease equilibrium price.
c. A severe drought leads ranchers to send more cattle to the slaughterhouse The Market for Beef Price of beef Quantity of beef D S
This will: O increase equilibrium quantity and increase equilibrium price. O decrease equilibrium quantity and increase equilibrium price. O decrease equilibrium quantity and decrease equilibrium price. O increase equilibrium quantity and decrease equilibrium price.
d. A severe drought increases the price of corn (used to feed the cattle) The Market for Beef Price of beef Quantity of beef D S
This will: O increase equilibrium quantity and increase equilibrium price. O decrease equilibrium quantity and increase equilibrium price. O increase equilibrium quantity and decrease equilibrium price. O decrease equilibrium quantity and decrease equilibrium price.