(a)
The change in
(a)
Explanation of Solution
An increase in the price of pork would lead to a fall in the quantity demanded of pork. This would result in an increase in the quantity demanded of beef as beef and pork are treated as substitutes by the consumers.
Substitute good: Substitute goods refer to a good with a positive cross-
(b)
The change in income of the consumer and demand for beef.
(b)
Explanation of Solution
An increase in the consumer income results in an increase in the quantity demanded of beef. This is due to the reason that the income of the consumer is a factor that influence the demand for a commodity.
(c)
The change in price of cattle feed and demand for beef.
(c)
Explanation of Solution
An increase in the price of feed grains leads to an increase in the price of cattle fee. This implies that the cost of rearing cattle increases and this would be reflected in the price of beef. The increase in the cost of cattle rearing results in a decrease in the demand for beef. Thus, the increase in price of cattle feed leads to a fall in the demand for beef.
(d)
The outbreak of cattle disease and demand for beef.
(d)
Explanation of Solution
The outbreak of cattle diseases such as mad cow or hoof- and mouth disease would lead to a fall in the demand for beef as the consumers’ preference for beef declines.
(e)
The increase in price of beef and demand for beef.
(e)
Explanation of Solution
An increase in the price of beef would result in a fall in the demand for beef as stated by the
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Chapter 3 Solutions
Microeconomics: Private and Public Choice (MindTap Course List)
- jarrow_forwardPrice ($/cup) 4 3.5 3 2.5 2 1.5 1 0.5 0 0 10 20 Original Supply A decrease in the price of coffee beans. New Demand Original Demand 30 40 50 60 70 80 90 Quantity (cups/hour) New Supply The figure above refers to the market for coffee. What might cause a shift from the original demand curve to the new demand curve? Check all that apply. An increase in the price of tea (a substitute for coffee). A decrease in income if coffee is an inferior good. An expectation that coffee prices will fall in the future. A decrease in the price of cream (a complement to coffee)arrow_forwardFind an article in The Wall Street Journal or The Economist that was published after 12/1/23 describing a change in price or quantity or both in some market. Analyze the situation using economic reasoning. A reference must be provided for the article Has there been an increase or decrease in demand? Factors that could shift the demand curve include changes in preferences, changes in income, changes in the price of substitutes or complements, or changes in the number of consumers in the market. Has there been an increase or decrease in supply? Factors that could shift the supply curve include changes in costs of materials, wages, or other inputs; changes in technology; or changes in the number of firms in the market. Draw a supply-and-demand graph to explain this change. Be sure to label your graph and clearly indicate which curve shifts. If done neatly, you can draw the graph by hand and paste it in your documentarrow_forward
- Agree or disagree, a decrease in supply causes the price of coffe to fallarrow_forwardChoose a commodity (a good or a service) that you are familiar with and discuss how and when demand and supply have changed (shifted) for this commodity.arrow_forwardPrice ($/cup) 3.5 3 88 2.5 2 1.5 1 0.5 0 10 20 Original Supply New Supply New Demand Original Demand 30 40 50 60 70 80 90 Quantity (cups/hour) The figure above refers to the market for coffee. What might cause shift from the original supply curve to the new supply curve? Check all that apply. An increase in the price of tea (a substitute for coffee). An expectation that coffee prices will fall in the future. A decrease in the price of coffee beans. A storm in that wipes out a large part of the coffee crop. A new technology that reduces the cost of making coffee.arrow_forward
- Which shifter increase or decrease , drawing ,change in price , change in quantityarrow_forwardDraw a supply and demand curve for the iPhone 11. Apple announces that the iPhone 12 is coming out in 1 year, what happens to the supply or demand for iPhone 11s? Why?arrow_forwardA change in which of the following will cause a change in the quantity demanded of coffee? Group of answer choices consumer income the price of green tea, a substitute for coffee the number of coffee consumers the price of coffeearrow_forward
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