Need help on part E) e CheggStudy Guided So_x Aplia: Student Course Hox ) course

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Need help on part E)

e CheggStudy Guided So_x Aplia: Student Course Hox ) courses.aplia.com/afser Piedmont Recreation > C- Roland Chrome Facebook-Login or S g x courses.aplia com afser × EveryTrail Travel Comm × C D courses aplia.com/af servlet/cmserver?ctx=malklat sandhul 0077&ctx-malkiat; sandhul 0077&cms; action-getFile&material-id;= 2147136659 - 0.4) Supply & Demand Diagrams: Graphically demonstrate the impact on the prevailing market situation for each event. Whenever appropriate, denote the initial and subsequent: price(s), quantity(s), & equilibrium(s). Furthermore, clearly state any special circumstances, relationships, or other conditions (Hint: keep in mind the ceteris paribus assumption; relax ceteris paribus only under circumstances of simultaneous and/or sequential shifts) Some years ago, carnivorous humanoids became very concerned about BSE-Bovine Spongiform Encephalopathy (also known as Mad Cow disease). People feared the dangers posed from eating contaminated meat a.) What would this concern do to the market curve for beef? b.) What would happen to the market for chicken and fish? c.) Consider the impact on the equilibrium prices of beef, chicken, and fish? Mad cow disease is spread by feeding cattle foods that contain body parts from infected animals. Presumably, the reason why cattle are fed this food is that it is cheaper than relying exclusively on grain for their food d.) What is the consequence for the supply curve of beef if a restriction on cattle feed is limited solely to grain? e.) Individually consider the of the following consequences for the beef market in a sequential manner: i.) If the new restrictions fail to restore confidence in beef. ii.) If the new restrictions succeed in restoring confidence returns to its original level ii.) Technological advances lead to large increases in grain yield At about the same time in Europe, there was an outbreak of hoof and mouth disease, and to stop the spread of the disease, large numbers of cattle were killed f.) What would this do to the beef market?

Explanation / Answer

E. (i). If the restrictions failed to restore the confidence in beef then the demand for beef would fall, with same level of supply, there would be an excess supply in the market making the equilibrium price to fall.

(ii). If the new restrictions are able to get back the original level of confidence in beef then the demand would increase. With the same supply curve, the equilibrium price would rise.

(iii). With technological advances in grain yield and large increses in its supply, with constant demand, the equilibrium price for grains would fall. This fall in price would in the next time period a healthy beef would be produced and the demand is likely to increase.

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