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

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Definitions:

Cafeteria

A type of food service location in which there is little or no waiting staff table service, with food provided on a self-service basis.

Observer Bias

A form of bias occurring when researchers' expectations influence their interpretation of participants' behaviors or outcomes of a study.

Sample Bias

occurs when a sample is collected in such a way that some members of the intended population are less likely to be included than others, leading to skewed results or conclusions.

Phi Phenomenon

An optical illusion in which stationary objects shown in rapid succession, such as flashing lights, appear to be moving.