Beef is a normal good. You observe that both the equilibrium price and quantity of beef have fallen over time. Which of the following explanations would be most consistent with this observation?
A)Consumers have experienced an increase in income, and beef-production technology has improved.
B)The price of chicken has risen, and the price of steak sauce has fallen.
C)New medical evidence has been released that indicates a negative correlation between a person's beef consumption and life expectancy.
D)The demand curve for beef must be positively sloped.

Question

Quizplus · Accepted Answer

The decrease in both the equilibrium price and quantity of beef can be explained by a decrease in demand, which could be caused by new medical evidence indicating a negative health impact from consuming beef. This would lead consumers to buy less beef, shifting the demand curve to the left and resulting in a lower equilibrium price and quantity. Choices A, B, and D do not directly explain a simultaneous decrease in both price and quantity, as they involve factors that could increase demand or affect supply differently.

Beef Is a Normal Good