Consider the market for chicken. Assuming that chicken and beef are substitutes, an increase in the price of beef will:
A) decrease the demand for chicken creating a lower price and a smaller amount of chicken purchased in the market.
B) decrease the supply of chicken creating a higher price and a smaller amount of chicken purchased in the market.
C) increase the demand for chicken creating a higher price and a greater amount of chicken purchased in the market.
D) increase the supply of chicken creating a lower price and a greater amount of chicken purchased in the market.

Question

Quizplus · Accepted Answer

If beef and chicken are substitutes, an increase in the price of beef will lead consumers to switch to consuming more chicken instead. This will increase the demand for chicken, leading to a higher price and a greater amount of chicken purchased in the market. Therefore, choice C is the best answer.

Consider the Market for Chicken