In an effort to reduce the surplus of dairy products, agricultural legislation paid dairy farmers to slaughter their herds and sell them to packinghouses (meat producers) in 1996-1997. How did this influence the market for beef?

Question

Quizplus · Accepted Answer

The slaughtering of dairy herds and selling them to packinghouses increased the supply of beef in the market. According to basic economic principles, an increase in supply, with demand remaining constant, leads to lower prices.

In an Effort to Reduce the Surplus of Dairy Products