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Ksju [112]
3 years ago
8

In the late 1990s "mad cow" disease caused people to buy less beef. It also caused the EU to ban imported British beef and the B

ritish government to ban the sale of older cattle. What is the effect of the following on price and quantity of British beef sold worldwide?
Business
1 answer:
Bingel [31]3 years ago
3 0

Answer:

Price of British beef falls initially, but regains some of its losses. Quantity sold falls.

Explanation:

British beef represents a large portion of the total European beef market, so a ban on British beef imports will initially cause the price of British beef to decrease a lot, but it will also increase the price of other European beef. This price shake up will eventually lead to a recovery of the price of British beef, since not all the cows were sick, but the most negative impact was not only on the price decrease but on the decrease in exports. Obviously a European ban on imported British beef will cause a dramatic decrease in the quantity sold.

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