Question

In the market for beef, the price of a pound of beef falls Explain the effect of this event on the quantity of beef supplied and on the supply of beef:______. A. The quantity of beef supplied decreases and the supply of beef also decreases B. The quantity of beef supplied increases and the supply of beef also increases C. The supply of beef decreases and the quantity of beef supplied is unchanged. D. The supply of beef is unchanged and the quantity of beef supplied increases. E. The quantity of beef supplied decreases and the supply of beef is unchanged.

Answer 1

Answer:

E. The quantity of beef supplied decreases and the supply of beef is unchanged.

Explanation:

In the market for beef, the price of a pound of beef falls. The effect is "the quantity of beef supplied decreases and the supply of beef is unchanged. The reason is that any price change of the product will not shift the demand or supply but changes the quantity supplied.