Suppose the Market for Beef Cattle Was Initially in Equilibrium

question 29

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, putting a 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.

---

Definitions:

International Trade

The exchange of goods, services, and capital between countries and territories, allowing for greater variety of consumption and efficiencies in production.

Productive

Refers to the ability of an individual, company, or economy to produce goods or services efficiently and effectively.

Tariff Revenue

Income generated by the government through the imposition of taxes on imported goods.

Tariff

A tax imposed by a government on imported or exported goods to control trade flows, raise revenue, or protect domestic industries.