The change in price of pork and demand for beef.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 3, Problem 1CQ

(a)

To determine

The change in price of pork and demand for beef.

(a)

Expert Solution

Explanation of Solution

An increase in the price of pork would lead to a fall in the quantity demanded of pork. This would result in an increase in the quantity demanded of beef as beef and pork are treated as substitutes by the consumers.

Economics Concept Introduction

Substitute good: Substitute goods refer to a good with a positive cross-elasticity of demand that is a good whose demand is increased when the price of another good is increased.

(b)

To determine

The change in income of the consumer and demand for beef.

(b)

Expert Solution

Explanation of Solution

An increase in the consumer income results in an increase in the quantity demanded of beef. This is due to the reason that the income of the consumer is a factor that influence the demand for a commodity.

(c)

To determine

The change in price of cattle feed and demand for beef.

(c)

Expert Solution

Explanation of Solution

An increase in the price of feed grains leads to an increase in the price of cattle fee. This implies that the cost of rearing cattle increases and this would be reflected in the price of beef. The increase in the cost of cattle rearing results in a decrease in the demand for beef. Thus, the increase in price of cattle feed leads to a fall in the demand for beef.

(d)

To determine

The outbreak of cattle disease and demand for beef.

(d)

Expert Solution

Explanation of Solution

The outbreak of cattle diseases such as mad cow or hoof- and mouth disease would lead to a fall in the demand for beef as the consumers’ preference for beef declines.

(e)

To determine

The increase in price of beef and demand for beef.

(e)

Expert Solution

Explanation of Solution

An increase in the price of beef would result in a fall in the demand for beef as stated by the law of demand.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Problem 1 Regression Discontinuity In the beginning of covid, the US government distributed covid stimulus payments. Suppose you are interested in the effect of receiving the full amount of the first stimulus payment on the total spending in dollars by single individuals in the month after receiving the payment. Single individuals with annual income below $75,00 received the full amount of the stimulus payment. You decide to use Regression Discontinuity to answer this question. The graph below shows the RD model. 3150 3100 3050 Total Spending in the month after receiving the stimulus payment 2950 3000 74000 74500 75000 75500 76000 Annual income a. What is the outcome? (5 points) b. What is the treatment? (5 points) C. What is the running variable? (5 points) d. What is the cutoff? (5 points) e. Who is in the treatment group and who is in the control group? (10 points) f. What is the discontinuity in the graph and how do you interpret it? (10 points) g. Explain a scenario which can…

Problem 2 Difference-in-Difference In the beginning of 2005, Minnesota increased the sales tax on alcohol. Suppose you are interested in studying the effect of the increase in sale taxes on alcohol on the number of car accidents due to drinking in Minnesota. Unlike Minnesota, Wisconsin did not change the sales tax on alcohol. You decide to use a Difference-in-difference (DID) Model. The numbers of car accidents in each state at the end of 2004 and 2005 are as follows: Year Number of car accidents in Minnesota Number of car accidents in Wisconsin 2004 2000 2500 2005 2500 3500 a. Which state is the treatment state and which state is the control state? (10 points) b. What is the change in the outcome for the treatment group between 2004 and 2005? (5 points) C. Can we interpret the change in the outcome for the treatment group between 2004 and 2005 as the causal effect of the policy on car accidents? Explain your answer. (10 points) d. What is the change in the outcome for the control…

Environmental Economics

Answer 2

Question

Chapter 3, Problem 1CQ

(a)

To determine

The change in price of pork and demand for beef.

(a)

Expert Solution

Explanation of Solution

An increase in the price of pork would lead to a fall in the quantity demanded of pork. This would result in an increase in the quantity demanded of beef as beef and pork are treated as substitutes by the consumers.

Economics Concept Introduction

Substitute good: Substitute goods refer to a good with a positive cross-elasticity of demand that is a good whose demand is increased when the price of another good is increased.

(b)

To determine

The change in income of the consumer and demand for beef.

(b)

Expert Solution

Explanation of Solution

An increase in the consumer income results in an increase in the quantity demanded of beef. This is due to the reason that the income of the consumer is a factor that influence the demand for a commodity.

(c)

To determine

The change in price of cattle feed and demand for beef.

(c)

Expert Solution

Explanation of Solution

An increase in the price of feed grains leads to an increase in the price of cattle fee. This implies that the cost of rearing cattle increases and this would be reflected in the price of beef. The increase in the cost of cattle rearing results in a decrease in the demand for beef. Thus, the increase in price of cattle feed leads to a fall in the demand for beef.

(d)

To determine

The outbreak of cattle disease and demand for beef.

(d)

Expert Solution

Explanation of Solution

The outbreak of cattle diseases such as mad cow or hoof- and mouth disease would lead to a fall in the demand for beef as the consumers’ preference for beef declines.

(e)

To determine

The increase in price of beef and demand for beef.

(e)

Expert Solution

Explanation of Solution

An increase in the price of beef would result in a fall in the demand for beef as stated by the law of demand.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 3, Problem 1CQ

(a)

To determine

The change in price of pork and demand for beef.

(a)

Expert Solution

Explanation of Solution

An increase in the price of pork would lead to a fall in the quantity demanded of pork. This would result in an increase in the quantity demanded of beef as beef and pork are treated as substitutes by the consumers.

Economics Concept Introduction

Substitute good: Substitute goods refer to a good with a positive cross-elasticity of demand that is a good whose demand is increased when the price of another good is increased.

(b)

To determine

The change in income of the consumer and demand for beef.

(b)

Expert Solution

Explanation of Solution

An increase in the consumer income results in an increase in the quantity demanded of beef. This is due to the reason that the income of the consumer is a factor that influence the demand for a commodity.

(c)

To determine

The change in price of cattle feed and demand for beef.

(c)

Expert Solution

Explanation of Solution

An increase in the price of feed grains leads to an increase in the price of cattle fee. This implies that the cost of rearing cattle increases and this would be reflected in the price of beef. The increase in the cost of cattle rearing results in a decrease in the demand for beef. Thus, the increase in price of cattle feed leads to a fall in the demand for beef.

(d)

To determine

The outbreak of cattle disease and demand for beef.

(d)

Expert Solution

Explanation of Solution

The outbreak of cattle diseases such as mad cow or hoof- and mouth disease would lead to a fall in the demand for beef as the consumers’ preference for beef declines.

(e)

To determine

The increase in price of beef and demand for beef.

(e)

Expert Solution

Explanation of Solution

An increase in the price of beef would result in a fall in the demand for beef as stated by the law of demand.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 3, Problem 1CQ

(a)

To determine

The change in price of pork and demand for beef.

(a)

Expert Solution

Explanation of Solution

An increase in the price of pork would lead to a fall in the quantity demanded of pork. This would result in an increase in the quantity demanded of beef as beef and pork are treated as substitutes by the consumers.

Economics Concept Introduction

Substitute good: Substitute goods refer to a good with a positive cross-elasticity of demand that is a good whose demand is increased when the price of another good is increased.

(b)

To determine

The change in income of the consumer and demand for beef.

(b)

Expert Solution

Explanation of Solution

An increase in the consumer income results in an increase in the quantity demanded of beef. This is due to the reason that the income of the consumer is a factor that influence the demand for a commodity.

(c)

To determine

The change in price of cattle feed and demand for beef.

(c)

Expert Solution

Explanation of Solution

An increase in the price of feed grains leads to an increase in the price of cattle fee. This implies that the cost of rearing cattle increases and this would be reflected in the price of beef. The increase in the cost of cattle rearing results in a decrease in the demand for beef. Thus, the increase in price of cattle feed leads to a fall in the demand for beef.

(d)

To determine

The outbreak of cattle disease and demand for beef.

(d)

Expert Solution

Explanation of Solution

The outbreak of cattle diseases such as mad cow or hoof- and mouth disease would lead to a fall in the demand for beef as the consumers’ preference for beef declines.

(e)

To determine

The increase in price of beef and demand for beef.

(e)

Expert Solution

Explanation of Solution

An increase in the price of beef would result in a fall in the demand for beef as stated by the law of demand.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 3, Problem 1CQ

(a)

To determine

The change in price of pork and demand for beef.

(a)

Expert Solution

Explanation of Solution

An increase in the price of pork would lead to a fall in the quantity demanded of pork. This would result in an increase in the quantity demanded of beef as beef and pork are treated as substitutes by the consumers.

Economics Concept Introduction

Substitute good: Substitute goods refer to a good with a positive cross-elasticity of demand that is a good whose demand is increased when the price of another good is increased.

(b)

To determine

The change in income of the consumer and demand for beef.

(b)

Expert Solution

Explanation of Solution

An increase in the consumer income results in an increase in the quantity demanded of beef. This is due to the reason that the income of the consumer is a factor that influence the demand for a commodity.

(c)

To determine

The change in price of cattle feed and demand for beef.

(c)

Expert Solution

Explanation of Solution

An increase in the price of feed grains leads to an increase in the price of cattle fee. This implies that the cost of rearing cattle increases and this would be reflected in the price of beef. The increase in the cost of cattle rearing results in a decrease in the demand for beef. Thus, the increase in price of cattle feed leads to a fall in the demand for beef.

(d)

To determine

The outbreak of cattle disease and demand for beef.

(d)

Expert Solution

Explanation of Solution

The outbreak of cattle diseases such as mad cow or hoof- and mouth disease would lead to a fall in the demand for beef as the consumers’ preference for beef declines.

(e)

To determine

The increase in price of beef and demand for beef.

(e)

Expert Solution

Explanation of Solution

An increase in the price of beef would result in a fall in the demand for beef as stated by the law of demand.

Answer 6

Chapter 3, Problem 1CQ

(a)

To determine

The change in price of pork and demand for beef.

(a)

Expert Solution

Explanation of Solution

An increase in the price of pork would lead to a fall in the quantity demanded of pork. This would result in an increase in the quantity demanded of beef as beef and pork are treated as substitutes by the consumers.

Economics Concept Introduction

Substitute good: Substitute goods refer to a good with a positive cross-elasticity of demand that is a good whose demand is increased when the price of another good is increased.

Answer 7

Chapter 3, Problem 1CQ

(a)

To determine

The change in price of pork and demand for beef.

Answer 8

(a)

Expert Solution

Explanation of Solution

An increase in the price of pork would lead to a fall in the quantity demanded of pork. This would result in an increase in the quantity demanded of beef as beef and pork are treated as substitutes by the consumers.

Answer 9

(a)

Expert Solution

Answer 10

(a)

Expert Solution

Answer 11

Expert Solution

Answer 12

Economics Concept Introduction

Substitute good: Substitute goods refer to a good with a positive cross-elasticity of demand that is a good whose demand is increased when the price of another good is increased.

Answer 13

(b)

To determine

The change in income of the consumer and demand for beef.

(b)

Expert Solution

Explanation of Solution

An increase in the consumer income results in an increase in the quantity demanded of beef. This is due to the reason that the income of the consumer is a factor that influence the demand for a commodity.

Answer 14

(b)

To determine

The change in income of the consumer and demand for beef.

Answer 15

(b)

Expert Solution

Explanation of Solution

An increase in the consumer income results in an increase in the quantity demanded of beef. This is due to the reason that the income of the consumer is a factor that influence the demand for a commodity.

Answer 16

(b)

Expert Solution

Answer 17

(b)

Expert Solution

Answer 18

Expert Solution

Answer 19

(c)

To determine

The change in price of cattle feed and demand for beef.

(c)

Expert Solution

Explanation of Solution

An increase in the price of feed grains leads to an increase in the price of cattle fee. This implies that the cost of rearing cattle increases and this would be reflected in the price of beef. The increase in the cost of cattle rearing results in a decrease in the demand for beef. Thus, the increase in price of cattle feed leads to a fall in the demand for beef.

Answer 20

(c)

To determine

The change in price of cattle feed and demand for beef.

Answer 21

(c)

Expert Solution

Explanation of Solution

An increase in the price of feed grains leads to an increase in the price of cattle fee. This implies that the cost of rearing cattle increases and this would be reflected in the price of beef. The increase in the cost of cattle rearing results in a decrease in the demand for beef. Thus, the increase in price of cattle feed leads to a fall in the demand for beef.

Answer 22

(c)

Expert Solution

Answer 23

(c)

Expert Solution

Answer 24

Expert Solution

Answer 25

(d)

To determine

The outbreak of cattle disease and demand for beef.

(d)

Expert Solution

Explanation of Solution

The outbreak of cattle diseases such as mad cow or hoof- and mouth disease would lead to a fall in the demand for beef as the consumers’ preference for beef declines.

Answer 26

(d)

To determine

The outbreak of cattle disease and demand for beef.

Answer 27

(d)

Expert Solution

Explanation of Solution

The outbreak of cattle diseases such as mad cow or hoof- and mouth disease would lead to a fall in the demand for beef as the consumers’ preference for beef declines.

Answer 28

(d)

Expert Solution

Answer 29

(d)

Expert Solution

Answer 30

Expert Solution

Answer 31

(e)

To determine

The increase in price of beef and demand for beef.

(e)

Expert Solution

Explanation of Solution

An increase in the price of beef would result in a fall in the demand for beef as stated by the law of demand.

Answer 32

(e)

To determine

The increase in price of beef and demand for beef.

Answer 33

(e)

Expert Solution

Explanation of Solution

An increase in the price of beef would result in a fall in the demand for beef as stated by the law of demand.

Answer 34

(e)

Expert Solution

Answer 35

(e)

Expert Solution

Answer 36

Expert Solution

Answer 37

Ch. 3 - Prob. 1CQ Ch. 3 - Prob. 2CQ Ch. 3 - Prob. 3CQ Ch. 3 - Prob. 4CQ Ch. 3 - Prob. 5CQ Ch. 3 - Prob. 6CQ Ch. 3 - Prob. 7CQ Ch. 3 - Prob. 8CQ Ch. 3 - Prob. 9CQ Ch. 3 - Prob. 10CQ

The change in price of pork and demand for beef.

The change in price of pork and demand for beef.

Explanation of Solution

The change in income of the consumer and demand for beef.

Explanation of Solution

The change in price of cattle feed and demand for beef.

Explanation of Solution

The outbreak of cattle disease and demand for beef.

Explanation of Solution

The increase in price of beef and demand for beef.

Explanation of Solution

Want to see more full solutions like this?

Chapter 3 Solutions