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:

Organizational Context

The environment or setting in which a company or entity operates, including its culture, structure, and external influences.

Collective Responsibility

The principle or practice of holding a group collectively accountable for the actions and consequences of its members.

Commitment to Goals

A strong determination to achieve specified aims or objectives.

Clarity of Goals

The degree to which organizational or individual objectives are defined, understood, and communicated.