More cattle are found to have mad cow disease. As a result, consumer confidence in the safety of beef is shaken. What would an economist predict will happen in the beef market?
A. The demand curve will shift to the left.
B. absolutely no change in either the quantity demand or the demand for beef
C. As consumer preferences move away from beef, there is an upward movement along the beef demand curve.
D. The demand curve does not shift but consumers move to a point lower down the curve.
Answer: A
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Profit maximization depends upon demand conditions, as well as upon productivity and costs
a. True b. False
The level of aggregate output demanded rises when the price level falls, because the resulting decrease in the interest rate will lead to
A. higher investment spending and lower consumption spending. B. higher investment spending and higher consumption spending. C. lower investment spending and higher consumption spending. D. lower investment spending and lower consumption spending.
In the circular flow, business owners receive
a. interest. b. profits. c. rent. d. wages.
Suppose you are making $50,000 per year and paying $5,000 per year in income taxes. You get a $10,000 per year raise and your income taxes are now $6,500 per year. Based on this information, the income tax system is
A) proportional. B) progressive. C) regressive. D) bracketed.