Question

The American Heart Association has just issued a report warning consumers about the negative health effects of eating beef. Which of the following changes in the beef market is most likely to occur as a result?
A. The demand curve will shift to the left, decreasing the price of beef.
B. The demand curve will shift to the right, increasing the price of beef.
C. Neither the supply nor demand curve will shift; only quantity will increase as price decreases.
D. Neither the supply nor demand curve will shift; only quantity will decrease as price increases.

Answer 1

Answer:

A. The demand curve will shift to the left, decreasing the price of beef.

Explanation:

• As due to the changes in the tastes and preferences of the consumers the change in the demands of the beef and prices will also decrease and the curve will shift to the left and so does the price of the good.

• The reports showing the negative effects of the beef on the health of the consumer is likely to make the changes in the market price of the products.