Question

Consider the market for beef. Assume doctors produce new research showing the consumption of beef is associated with high blood pressure and heart disease. What do you think will happen to the market of beef?

Demand would decrease, reducing prices and increasing quantity sold

Demand would fall, reducing prices and reducing quantity sold.

Quantity demanded would fall because of higher beef prices

Demand would shift right, increasing prices and reducing beef consumption.

Consider the market for wholesale electricity. What would you expect to happen to the price and quantity of electricity given a large decrease in the price of coal (38% of electricity is generated by burning coal)?

Electricity prices would increase and the amount sold decrease

Electricity prices would decrease and the amount of electricity sold would increase

Both electricity prices and quantity would increase

Both electricity prices and quantity would decrease.

Answer 1

1)

Demand would fall, reducing prices and reducing quantity sold.

because of health issues, people will buy less resulting in less quantity sold which will reduce prices

2)

Electricity prices would decrease and the amount of electricity sold would increase

because of low price of coal more electricity can be produced at low cost which can be passed on resulting in higher demand and quantity sold

the above is answer..