Scenario 5-4 Milk Has an Inelastic Demand,and Beef Has an Elastic Demand.Suppose

question 13

Multiple Choice

Scenario 5-4
Milk has an inelastic demand,and beef has an elastic demand.Suppose that a mysterious increase in bovine infertility decreases both the population of dairy cows and the population of beef cattle by 50 percent.
-Refer to Scenario 5-4.The equilibrium price will

• A)increase in both the milk and beef markets.
• B)increase in the milk market and decrease in the beef market.
• C)decrease in the milk market and increase in the beef market.
• D)decrease in both the milk and beef markets.

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Definitions:

Facet

A smooth, flat surface on a bone, typically where two bones articulate (form a joint), allowing for movement.

Fovea

A small depression in the retina of the eye where visual acuity is highest, due to the high concentration of cones.

Capacity Constraint

Limitations on the production capability of a manufacturing facility or supply chain due to resources, technology, or workforce.