Which scenario would cause a speculator in chicken and beef futures to use a "buy low and sell high" strategy for chicken?
A) A report emerges from the Surgeon General that eating red meat in moderate amounts allows for increased brain power.
B) Cows are found to be infected with "Mad Cow Disease" and must be destroyed.
C) Households begin eating more meals at restaurants.
D) Chickens are found to spread the Avian Flu disease among humans.

Question

Quizplus · Accepted Answer

If cows are infected with "Mad Cow Disease," the supply of beef would decrease, potentially increasing the demand for chicken as an alternative protein source. This could drive up chicken prices, allowing a speculator to buy chicken futures at a lower price and sell at a higher price later.

Which Scenario Would Cause a Speculator in Chicken and Beef