Refer to the Four Graphs Above

question 94

Multiple Choice

Refer to the four graphs above. Select the graph that best shows the changes in demand and supply in the market specified in the following situation: the market for beef, if a new diet fad
Favoring beef consumption becomes hugely popular, while cattle producers see steeply rising costs
Of cattle feed.

• A) Graph A
• B) Graph B
• C) Graph C
• D) Graph D

---

Definitions:

Herfindahl Index

The Herfindahl Index is a measure of market concentration used to determine the intensity of competition within an industry, calculated by summing the squares of the market shares of all firms within the market.

Import Competition

The pressure on domestic companies from foreign producers offering goods or services in the same market.

Herfindahl Index

A measure of market concentration that squares and then sums the market share percentages of all firms within the industry.

Market Shares

The proportion of a market controlled by a particular company, product, or service in relation to total sales in the market.