Beef Is a Normal Good and Peopleʹs Incomes Fall

question 415

Multiple Choice

Beef is a normal good and peopleʹs incomes fall. At the same time a bumper corn crop reduces the cost of feeding steers. These changes result in

• A) no change in the equilibrium quantity of beef.
• B) an increase in the equilibrium quantity of beef.
• 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) an increase in the equilibrium quantity of beef if the shift in the demand curve is smaller than the shift in the supply curve.

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Definitions:

Standard of Living

The level of wealth, comfort, material goods, and necessities available to a person, group, or society.

Birthrate

The ratio of total live births to the population in a specified area or period, usually calculated per thousand inhabitants per year.

Demographic Transition

A theory describing the transition from high birth and death rates to lower birth and death rates as a country develops from a pre-industrial to an industrialized economic system.

Demographic Transition

A model describing the transformation of birth and death rates from high to low levels in a society over time, typically associated with economic development.