If the Market for Beef Cattle Was Initially in Equilibrium

question 11

Multiple Choice

If the market for beef cattle was initially in equilibrium, an increase in the price of the feed grains used to fatten cattle would cause

• A)the demand for beef cattle to increase, driving the price of beef upward
• B)the supply of beef cattle to decline, driving the price of beef upward in the long run
• C)the supply of beef to increase, placing downward pressure on the price of beef in the long run
• D)both supply and demand to fall, leaving the price of beef virtually unchanged
• E)the supply of beef to increase, driving the price of beef down and increasing demand

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Definitions:

Buyer

An individual or entity that purchases goods or services from another.

UCC

All commercial transactions across the United States are governed by a thorough set of legal guidelines known as the Uniform Commercial Code (UCC).

Cancel

The act of terminating or putting an end to a contract, agreement, or reservation.

Seller

A person or business that offers goods or services for sale to consumers or other businesses.