Question

Arby’s sells brisket last year there was drought and farmers were able to raise fewer cows is this a change in supply or demand how will this change the price

Answer 1

This is a change in both supply and demand. Due to farmers raising fewer cows the supply of cows goes down. Because there is more of a need of cows due to the shortage the demand or need for them goes up. Due to the limited amount of cows and the high demand prices will go up.