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

question 30

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.Total consumer spending on milk will

• A)increase,and total consumer spending on beef will increase.
• B)increase,and total consumer spending on beef will decrease.
• C)decrease,and total consumer spending on beef will increase.
• D)decrease,and total consumer spending on beef will decrease.

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Definitions:

Specified Date

A particular or agreed upon day on which an event is scheduled to occur or a deadline is to be met.

Time Instrument

A document promising payment of a certain amount of money at a fixed or determinable future time, such as a promissory note or check.

Payment

The transfer of money or goods from one party to another as compensation for goods, services, or to fulfill a legal obligation.

Check Clearing

The process by which banks exchange checks and settle funds, ensuring that the amount specified on the check is transferred from the payer's account to the payee's account.