Explain what would happen to the equilibrium price and quantity in the market fo
ID: 2439848 • Letter: E
Question
Explain what would happen to the equilibrium price and quantity in the market for ground beef in each of the following scenarios. Be specific about any assumptions your making. A) there is an out break of mad cow disease. B) people’s income rises. C) the price of chicken falls. D) the price of(grazing) land falls. E) the price of dairy products ( milk, cheese, etc) rise. Explain what would happen to the equilibrium price and quantity in the market for ground beef in each of the following scenarios. Be specific about any assumptions your making. A) there is an out break of mad cow disease. B) people’s income rises. C) the price of chicken falls. D) the price of(grazing) land falls. E) the price of dairy products ( milk, cheese, etc) rise. Explain what would happen to the equilibrium price and quantity in the market for ground beef in each of the following scenarios. Be specific about any assumptions your making. A) there is an out break of mad cow disease. B) people’s income rises. C) the price of chicken falls. D) the price of(grazing) land falls. E) the price of dairy products ( milk, cheese, etc) rise.Explanation / Answer
Answer A : When there is an outbreak of mad cow disease than equilibrium quantity has been reduced and price of the ground beef has been reduced which resulted from disease of mad cows resulted in illness in human being so they reduced consumption.
Answer B : Here ground beef is considered as inferior good. When income of the consumer increases which resulted decrease in the consumption and equilibrium quantity in the market has been decreased which resulted price to be decreased.
Answer C : In this there is assumption that chicken and beef are substitute goods. If price of chicken falls equilibrium quantity of beef has been decreased and price automatic falls.
Answer D : As price of the input has been falls which resulted that quantity supplied increases and price has been falls which resulted in equilibrium quantity has been increased tremendously.The equilibrium price has been reduced and equilibrium quantity increased.
Answer E : The price of dairy products are rises than it affect such as quantity demanded for beef increases as people switch off there consumption which resulted in an increase in the price of the beef.
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