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In: Economics

QUESTION 2 Use graphical demand and supply analysis to support your explanation of the effect the...

QUESTION 2

Use graphical demand and supply analysis to support your explanation of the effect the following events will have on the market for beef. (Assume ceteris paribus for each of the event).

(a) A sharp rise in average income, assuming beef is a normal good.

(b) Farmers have access to high quality cattle feed (food for the cows), which has reduced the time it takes to get cattle ready for the market.

(c) Governments in beef producing countries have not only ordered the mass slaughter of cows due to the spread of mad cow disease but they have also warned consumers about the dangers of consuming beef. (HINT: Explain all possible impact on price and quantity)                                                                                                                                                                          

                                                                                                               2 + 2 + 4 = 8 Marks

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Rahul Sunny answered 1 year ago
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