Suppose We Observe the Following Two Simultaneous Events in the Market

question 119

Multiple Choice

Suppose we observe the following two simultaneous events in the market for beef. First, there is a decrease in the demand for beef due to changes in consumer tastes. And second, there is a reduction in supply due to cattle farmers selling their land to real estate developers. We know with certainty that these two simultaneous events will cause which of the following?

• A)no change in the equilibrium quantity and a reduction in the equilibrium price
• B)an increase in the equilibrium quantity and in the equilibrium price
• C)a decrease in the equilibrium quantity and an indeterminate change in the equilibrium price
• D)a decrease in the equilibrium quantity and an increase in the equilibrium price

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Definitions:

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Circular depressions on the surface of planets, moons, or other celestial bodies, formed by the high-speed impact of a meteoroid, asteroid, or comet.

Point Bar

A depositional feature made of sand and gravel that forms on the inside bend of streams and rivers.

Erosional Features

Landforms created by the removal of soil, rock, or sediment through water, wind, ice, or other natural forces.

Radar Image

A representation of objects produced through the use of radio waves, often utilized in weather monitoring and mapping terrain.