Beef Is a Normal Good and People's Incomes Fall

question 325

Multiple Choice

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.

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Definitions:

Partnership Business

A business owned and operated by two or more individuals who share its profits and liabilities.

Duty Of Care

The duty of all persons, as established by tort law, to exercise a reasonable amount of care in their dealings with others. Failure to exercise due care, which is normally determined by the “reasonable person standard,” constitutes the tort of negligence.

Jointly And Severally

A legal term referring to a situation where two or more parties are held both together and individually responsible for an obligation.

Obligations

Duties or commitments imposed by law, contract, or moral responsibility.