Question

Which of the following would increase the current demand for beef? Check all that apply. A. Widespread outbreak of mad cow or hoof-and-mouth disease B. An increase in the price of beef C. Higher pork prices D. Higher consumer income, assuming that beef is a normal good E. Higher prices of feed grains used to feed cattle

Answer 1

Answer:

Option (D) is correct.

Explanation:

If we assume that beef is a normal good.

We know that there is a positive relationship between the income of the consumer and the demand for normal good. This means that if there is an increase in the income of a consumer then as a result the quantity demanded for a normal good also increases.

In our case, if there is an increase in the income level of the consumer then as a result the quantity demanded for beef also increases.