How would a decrease in the price of the feed grains used to feed cattle affect the market for beef?
A) The demand for beef would increase, increasing beef prices.
B) The demand for beef would decrease, decreasing beef prices.
C) The supply of beef would increase, decreasing beef prices.
D) The supply of beef would decrease, increasing beef prices.

Question

Quizplus · Accepted Answer

A decrease in the price of feed grains reduces the cost of raising cattle, leading to an increase in the supply of beef, which typically results in lower beef prices.

How Would a Decrease in the Price of the Feed