Beef Is a Normal Good

question 150

Multiple Choice

Beef is a normal good. You observe that both the equilibrium price and quantity of beef have fallen over time. Which of the following explanations would be most consistent with this observation?

• A)Consumers have experienced an increase in income, and beef-production technology has improved.
• B)The price of chicken has risen, and the price of steak sauce has fallen.
• C)New medical evidence has been released that indicates a negative correlation between a person's beef consumption and life expectancy.
• D)The demand curve for beef must be positively sloped.

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Definitions:

Expressed

Clearly communicated or made known in words, actions, or symbols.

Years

Units of time equal to 365 days, or 366 in a leap year, used to measure durations and ages.

Months

Periods into which a year is divided, each consisting of roughly 30 to 31 days, except for February which has 28 or 29 days.

Compounded Monthly

Interest that is calculated on the principal and the accumulated interest of previous periods on a monthly basis.