Question

As a result of an outbreak of mad cow disease, the supply of beef to the...

As a result of an outbreak of mad cow disease, the supply of beef to the market has dropped substantially in the short-run. As a substitute for beef, what should you expect to happen to the demand for pork? Use graphs to show your work.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

The major outbreak in mad cow disease will reduce the supply of beef in the market. So, the supply curve of beef will shift to the left as shown in the below figure a. Due to reduced supply, the prices of beef will eventually increase. People will stop buying beef as it is more costly now and start looking for alternatives.

Pork, being considered as the substitute for beef, will have higher demand as it is cheaper than the expensive beef available. As a result, people start purchasing more pork and the total demand for pork will increase. This will shift the demand for pork to right as shown in figure b.

BEEF, s 1.Ws In : Beef O», 7 Price A / 7 a a Pook ♡

**if you liked the answer, then please upvote. Would be motivating for me. Thanks

Add a comment
Know the answer?
Add Answer to:
As a result of an outbreak of mad cow disease, the supply of beef to the...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • DQuestion 22 The CNN reports an outbreak of mad cow disease in the US. If chicken...

    DQuestion 22 The CNN reports an outbreak of mad cow disease in the US. If chicken and beef are substitutes, how will these developments affect the equilibrium price and quantity of chicken sold in the US O Equilibrium price decreases; the change in equilibrium quantity is ambiguous. O Equilibrium quantity decreases; the change in equilibrium price is ambiguous. O Equilibrium price decreases; equilibrium quantity increases.

  • Use supply and demand diagrams to illustrate the qualitative effect of the following shocks to the...

    Use supply and demand diagrams to illustrate the qualitative effect of the following shocks to the Canadian beef market. In each case, explain what happens to the equilibrium price and quantity using words. (a) A new study shows there are significant health risks associated with consuming too much beef. (b) Personal income tax rates fall by 50%. (c) A new plant-based “meatless” burger is introduced onto the market. (d) An outbreak of BSE (“mad cow disease”) is found in a...

  • 9. As a result of changes in supply and demand conditions in the beef market, the...

    9. As a result of changes in supply and demand conditions in the beef market, the equilibrium price of beef has increased. What changes in the conditions of the beef market might have caused this? Illustrate your answer with a supply and demand diagram.

  • This question will deal with demand, supply, equilibrium and comparative statics in a specific market: the...

    This question will deal with demand, supply, equilibrium and comparative statics in a specific market: the market for pork. We will use specific equations for Demand and Supply of pork which come from an academic paper: “Production Subsidy and Countervailing Duties in Vertically Related Markets: The Hog-Pork Case Between Canada and the United States” written by Giancarlo Moschini and Karl D. Meilke which appeared in American Journal of Agricultural Economics, Vol. 74, No. 4 (Nov., 1992), pp.951-961. The authors estimated...

  • Consider the market for leather. The following events occur simultaneously: 1. The price of beef rises(beef...

    Consider the market for leather. The following events occur simultaneously: 1. The price of beef rises(beef and leather both come for cows) 2. The price of alligator hides increases. 3. Consider the market for leather. The following events occur simultaneously: (i) (ii) The price of beef rises (beef and leather both come from cows). The price of alligator hides increases. Draw a demand-and-supply graph showing equilibrium in the market for leather before the two events described above. Label the axes...

  • In 2001 an outbreak of foot-and-mouth disease in Europe led to the burning of millions of...

    In 2001 an outbreak of foot-and-mouth disease in Europe led to the burning of millions of cattle carcasses. What impact do you think this had on the supply of cattle hides, hide prices, the supply of leather goods, and the price of leather goods? Support your answers to these questions using Demand, Supply, and Market Equilibrium theory.

  • Question1: Has the outbreak of the coronavirus affected the demand, the supply side of the market...

    Question1: Has the outbreak of the coronavirus affected the demand, the supply side of the market or both if we consider the world as one country for the market of gasoline? If it affects both, in what order? (Hint Supply is first affected or demand? Think about what is happening in the city of Wuhan). What has been the impact of this issue on the price of gas? Does this matches your demand and supply response? ( Here, use either...

  • Suppose that the market for cantaloupes is currently in long-run equilibrium at a price of $3...

    Suppose that the market for cantaloupes is currently in long-run equilibrium at a price of $3 per melon. A listeria outbreak in cantaloupe crops leads to a sharp decline in the demand for cantaloupes. a) In the short-run, what will happen to the price of a cantaloupe? Explain and use a graph to illustrate your answer. b) In the short-run, how will firms respond to the change in the price described in part (a)? What will happen to each producer’s...

  • Assume Pork and chicken market in China is perfectly competitive and 1000 firms are producing the...

    Assume Pork and chicken market in China is perfectly competitive and 1000 firms are producing the pork. Following equations shows the TC for the production for short run and long run. Qd = 5000-4p STC(q) = 100 + 10q +q2 TC(q) = 100q – 2q2 + 0.2 q3 13.6 What is the short run shut down price, Ps? 13.7 Given 13.6, what is the equation for the short run supply curve for a producer? 13.8 What is the short run...

  • Problem 24-05A a-c (Video) (Part Level Submission) Sheridan Labs, Inc. provides mad cow disease testing for...

    Problem 24-05A a-c (Video) (Part Level Submission) Sheridan Labs, Inc. provides mad cow disease testing for both state and federal governmental agricultural agencies. Because the company's customers are governmental agencies, prices are strictly regulated. Therefore, Sheridan Labs must constantly monitor and control its testing costs. Shown below are the standard costs for a typical test. $2.80 30.00 Direct materials (2 test tubes @ $1.40 per tube) Direct labor (1 hour @ $30 per hour) Variable overhead (1 hour @ $6.00...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT