Question

What is likely to happen to the demand of Ground Beef if income of the people increases? Please explain your answer.

Answer 1

Answer:

If income of the people increases, the demand for Ground Beef will decrease. This is so because ground beef is one of the cheapest cuts of meat that exist in the meat market, given its relative low quality and the impossibility of its use in a large number of meals.

Therefore, if the population's income increases, consumption will shift towards higher quality cuts of meat, which logically have a higher price, such as ribs.