Assume prices for corn and soybeans have been in decline over the last few months. What are the market impacts of the decline in the price of corn and soybeans on the fed cattle market that uses products from those grains as feed?
A. Increase in the price and a decline in the quantity of fed cattle;
B. Increase in the price and an increase in the quantity of fed cattle;
C. Decline in the price and a decline in the quantity of fed cattle;
D. Decline in the price and an increase in the quantity of fed cattle.
Ans: D. Decline in the price and an increase in the quantity of fed cattle.
You might also like to view...
Which of the following is true concerning the income effect of a decrease in price?
A) It will lead to an increase in consumption only for a normal good. B) It always will lead to an increase in consumption. C) It will lead to an increase in consumption only for an inferior good. D) It will lead to an increase in consumption only for a Giffen good.
The relationship between money supply, output, and the overall level of prices is illustrated by the:
A. classical theory of inflation. B. neutrality of money. C. aggregate price level. D. measure of real output.
If one person's use of good x diminishes other people's use of it, then good x is one of two types of goods. What are those two types?
If we observe a decrease in the price of a good and an increase in the amount of the good bought and sold, this could be explained by a(n):
A. increase in the supply of the good. B. increase in the demand for the good. C. decrease in the demand for the good. D. decrease in the supply of the good.