Question

After widespread press reports about the dangers of contracting "mad cow disease" by consuming beef from Canada, the likely economic effect on the U.S. demand curve for beef from Canada is:

Answer 1

Answer:

The demand curve will shift to the left (reduce)

Explanation:

Shift in demand results from change in other factors affecting demand except for price.

There are wide-spread reports of contacting mad cow disease by consuming beef from Canada. This will result in a general decrease in the quantity of beef demanded (shift in demand to the left). At all prices there will be less demand for Canadian beef.

This is illustrated in the attached diagram.