Suppose the Market for Beef Cattle Was Initially in Equilibrium

question 147

Multiple Choice

Suppose the market for beef cattle was initially in equilibrium .An increase in the price of the fodder used to feed 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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