If the Market for Beef Cattle Was Initially in Equilibrium

question 11

Multiple Choice

If the market for beef cattle was initially in equilibrium, an increase in the price of the feed grains used to fatten cattle would cause

• A)the demand for beef cattle to increase, driving the price of beef upward
• B)the supply of beef cattle to decline, driving the price of beef upward in the long run
• C)the supply of beef to increase, placing downward pressure on the price of beef in the long run
• D)both supply and demand to fall, leaving the price of beef virtually unchanged
• E)the supply of beef to increase, driving the price of beef down and increasing demand

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Definitions:

Competition

The rivalry among sellers in the market aiming to achieve such goals as increasing profits, market share, and sales volume by varying the elements of the marketing mix.

Federal Trade Commission

A government agency aimed at preventing anticompetitive, deceptive, and unfair business practices through law enforcement, advocacy, and education.

Clayton Act

A U.S. antitrust law enacted in 1914 aimed at promoting fair competition and preventing corporate behaviors that lead to monopolies.

U.S. Department of Justice

The federal executive department responsible for enforcing the laws of the United States and administering justice.