Beef is a normal good and people's incomes fall. At the same time a bumper corn crop reduces the cost of feeding steers. These changes result in
A) an increase in the equilibrium quantity of beef.
B) an increase in the equilibrium quantity of beef if the shift in the demand curve is smaller than the shift in the supply curve.
C) an increase in the equilibrium quantity of beef if the shift in the demand curve is larger than the shift in the supply curve.
D) no change in the equilibrium quantity of beef.
B
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The monopoly can shift the demand for its product rightward by
A) accommodating entry. B) advertising new uses for its product. C) moving along the learning curve. D) All of the above.
Congress commissioned a study to determine what the poverty level or minimum level for subsistence should be for the U.S. population. What branch of economics does this represent?
A) Normative economics B) Positive economics C) Microeconomics D) Macroeconomics