Beef Is a Normal Good

question 192

Multiple Choice

Beef is a normal good. You observe that both the equilibrium price and quantity of beef has fallen 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:

Operating Cycle

The period it takes for a business to acquire resources, produce inventory, sell it in the market, and eventually collect cash from the sale.

Accounts Payable Period

The average amount of time it takes for a business to pay off its suppliers and creditors for purchases made on credit.

Cash Cycle

The time period between the outlay of cash for the production process and the collection of cash from customers.

Fixed Asset Requirements

The necessary investments in long-term assets like property, plant, and equipment that a business needs to carry out its operations.