Beef Is a Normal Good

question 102

Multiple Choice

Beef is a normal good. You observe that both the equilibrium price and quantity of beef have risen over time. Which of the following 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)Consumer tastes have changed so as to prefer beef less than before.
• D)The demand curve for beef must be positively sloped.

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Definitions:

Long-Term Investments

Investments held by a company not intended for sale in the short term and expected to deliver value over an extended period.

Interest Receipt

Interest Receipts are amounts received by an individual or a company as interest from investments, loans given, or savings.

Market Rate

The prevailing interest rate available in the market for loans or the return on investment securities.

Preferred Shares

Preferred shares are a type of equity security that typically provide dividends and asset liquidation preference over common shares but usually do not carry voting rights.