Beef Is a Normal Good

question 150

Multiple Choice

Beef is a normal good. You observe that both the equilibrium price and quantity of beef have fallen over time. Which of the following explanations 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)New medical evidence has been released that indicates a negative correlation between a person's beef consumption and life expectancy.
• D)The demand curve for beef must be positively sloped.

---

Definitions:

Spearman Rank

A nonparametric measure of rank correlation that assesses how well the relationship between two variables can be described using a monotonic function.

Ordinal Variables

Variables that represent categories with a natural order or ranking among them, though the intervals between the rankings may not be equal.

Interval Variables

Variables that have measurable distances between values but no true zero point, allowing for the calculation of meaningful differences.

Relationship

A connection or association between two or more variables in a dataset or study.