10. Scientists discover a new process for producing lab-grown beef that tastes e

Question

10. Scientists discover a new process for producing lab-grown beef that tastes exactly the

same as regular beef, but can be produced for half the price. What happens to the

market for cows in the short run? (1 pt)

A) The supply of cows would decrease because it would become harder to make a profit

selling them

B) There would be no effect on the market for cows

C) Demand for cows would decrease because no one would be willing to pay more than

the lab-grown price for cattle-grown beef

10. Scientists discover a new process for producing lab-grown beef that tastes exactly the same as regular beef, but can be produced for half the price. What happens to the market for cows in the short run? (1 pt) A) The supply of cows would decrease because it would become harder to make a profit selling them B) There would be no effect on the market for cows C) Demand for cows would decrease because no one would be willing to pay more than the lab-grown price for cattle-grown beef D) The price of cows would rise due to increased competition from the lab-grown beef

Explanation / Answer

C is correct

With new lab grown beef demand for cows fall as these lab grown beefs are substitutes for cows. Decrease in price of substitute goods reduces the demand of the good.

Thus demand for cows decrease.

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