Suppose We Observe the Following Two Simultaneous Events in the Market

question 119

Multiple Choice

Suppose we observe the following two simultaneous events in the market for beef. First, there is a decrease in the demand for beef due to changes in consumer tastes. And second, there is a reduction in supply due to cattle farmers selling their land to real estate developers. We know with certainty that these two simultaneous events will cause which of the following?

• A)no change in the equilibrium quantity and a reduction in the equilibrium price
• B)an increase in the equilibrium quantity and in the equilibrium price
• C)a decrease in the equilibrium quantity and an indeterminate change in the equilibrium price
• D)a decrease in the equilibrium quantity and an increase in the equilibrium price

---

Definitions:

Work Hard

The act of exerting significant effort and diligence in completing tasks or achieving goals.

Communicate

The process of transmitting information, ideas, emotions, skills, and knowledge from one individual or group to another through the use of mutually understood signs, symbols, and semiotic rules.

Ethical Decision-making

The process of evaluating and choosing among alternatives in a manner consistent with ethical principles, ensuring decisions align with values like fairness, justice, and beneficence.

Identifying Differences

The process of recognizing and acknowledging the distinct characteristics, attributes, or qualities between things or persons.