Assume that the market for beef is perfectly competitive and in equilibrium. Which of the following would most likely result in an increase in both the equilibrium price and the equilibrium quantity of beef? A) A decrease in the supply of beef.

B) An increase in family incomes.

C) An increase in the price of feed grains.

D) A decrease in the price of pork.

Question

Social Studies

Kassandra Howard

22 August, 12:25

Assume that the market for beef is perfectly competitive and in equilibrium. Which of the following would most likely result in an increase in both the equilibrium price and the equilibrium quantity of beef? A) A decrease in the supply of beef.

B) An increase in family incomes.

C) An increase in the price of feed grains.

D) A decrease in the price of pork.

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Answers (1)

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Ryker · Answer 1

Answer: A) A decrease in the supply of beef.

Explanation: In the equilibrium of supply and demand, the demand is determined by quantity of people who want to get something, this cycle has different variables, despite the increase in both aspects, if it keeps increasing, this last minimum cost can cause that a person can get something, for example, if you buy an ice cream daily and it keep increasing its price daily as well, maybe just in a cent, but this continuous increase in price could cause that this last cent can impede its obtaining.