During the 1990s positive technological change in the production of chicken caused the price of chicken to fall. Holding everything else constant, how would this affect the market for pork (a substitute for chicken)?
A) The demand for pork would decrease and the equilibrium price of pork would decrease.
B) The demand for pork would increase because consumers could afford to buy more chicken and pork.
C) The supply of pork would increase and the equilibrium price of pork would decrease.
D) The demand for pork would decrease and the equilibrium price of pork would increase.
A
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Equality means distributing society's resources in the most efficient manner
a. True b. False Indicate whether the statement is true or false
When a large nation imposes a tariff, which of the following is NOT a cost incurred?
a. deadweight efficiency loss b. reduced consumer surplus c. deterioration of terms of trade for the trading partners d. falling government revenues for the nation imposing the tariff
Suppose that the percentage change in supply is -50%, the price elasticity of demand is 4, and the price elasticity of supply is 1. The equilibrium price will:
A. decrease by 10 percent. B. increase by 55 percent. C. increase by 10 percent. D. decrease by 55 percent.
Refer to the table below. If the consumer buys product X or product Y one unit at a time, which of the following will the consumer's first two purchases be?
Answer the question based on the table below showing the marginal utility schedules for product X and product Y for a hypothetical consumer. The price of product X is $4 and the price of product Y is $2. The income of the consumer is $20.
A. A first unit of X followed by a first unit of Y
B. A first unit of X followed by a second unit of X
C. A first unit of Y followed by a first unit of X
D. A first unit of Y followed by a second unit of Y