-Consider the market for ground beef represented by Figure 3-12,which is initially in equilibrium at point J.Assume that ground beef is an inferior good.Which of the following could explain a movement to a new equilibrium at point M?
A) a change in tastes away from hamburgers combined with an increased price for cattle feed
B) an increase in buyers' incomes combined with a cost-saving technological improvement
C) a decrease in the price of hot dogs combined with an increased price for labor
D) a decrease in buyers' incomes combined with a decrease in the number of acres owned by cattle ranches
E) a drop in the population combined with a increased price for an alternate form of packaged beef

Question

-Consider the market for ground beef represented by Figure 3-12,which is initially in equilibrium at point J.Assume that ground beef is an inferior good.Which of the following could explain a movement to a new equilibrium at point M?
A) a change in tastes away from hamburgers combined with an increased price for cattle feed 
B) an increase in buyers' incomes combined with a cost-saving technological improvement 
C) a decrease in the price of hot dogs combined with an increased price for labor 
D) a decrease in buyers' incomes combined with a decrease in the number of acres owned by cattle ranches 
E) a drop in the population combined with a increased price for an alternate form of packaged beef

Quizplus · Accepted Answer

A decrease in buyers' incomes would increase the demand for an inferior good like ground beef, while a decrease in the number of acres owned by cattle ranches would reduce the supply, leading to a new equilibrium at point M.

-Consider the Market for Ground Beef Represented by Figure 3-12,which