Asked by Natalie Zavala on May 10, 2024
Verified
If chicken and beef are substitutes,then a fall in the price of chicken will bring about:
A) an increase in the demand for beef.
B) a decrease in the demand for beef.
C) an increase in the quantity demanded of beef.
D) no change in the demand for beef.
Price of Chicken
The cost at which chicken is sold, which can vary based on factors like market demand, feed prices, and production costs.
Demand for Beef
The desire of consumers to purchase beef at various price levels, holding other factors constant.
- Acknowledge the disparities between normal goods, inferior goods, substitute products, and complementary items.
Verified Answer
MB
Mincadet BarrackMay 13, 2024
Final Answer :
B
Explanation :
When chicken becomes cheaper, consumers are likely to switch from buying beef to chicken since they are substitutes. This leads to a decrease in the demand for beef.
Learning Objectives
- Acknowledge the disparities between normal goods, inferior goods, substitute products, and complementary items.