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:

Isoquant Map

A graphical representation showing different combinations of inputs that produce the same level of output.

Curves

In various contexts, it refers to graphical representations that show a relationship between two or more variables or factors.

L-shaped Isoquant

A graphical representation in production theory showing combinations of input factors that yield the same output, where the shape indicates perfect substitutability between inputs up to a point, followed by no substitutability.

Perfect Substitutes

Goods or services that can be used in exact place of each other with no loss of utility to the consumer, often characterized by a constant marginal rate of substitution.