Suppose the Market for Beef Cattle Was Initially in Equilibrium

question 147

Multiple Choice

Suppose the market for beef cattle was initially in equilibrium .An increase in the price of the fodder used to feed cattle would cause:

• A)the demand for beef cattle to increase,driving the price of beef upward.
• B)the supply of beef cattle to decline,driving the price of beef upward in the long run.
• C)the supply of beef to increase,placing downward pressure on the price of beef in the long run.
• D)both supply and demand to fall,leaving the price of beef virtually unchanged.
• E)the supply of beef to increase,driving the price of beef down and increasing demand.

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Definitions:

Alternative Fuels

Fuels other than fossil fuels, often produced from renewable resources, used to power vehicles and machinery.

Economically Viable

Capable of generating sufficient income to cover expenses and produce a profit.

Nonrenewable Natural Resources

Natural resources that do not replenish at a sustainable rate within a human lifetime, such as fossil fuels, minerals, and metals.

Productive Inputs

The resources used in the production of goods and services, including labor, capital, and raw materials.