Asked by
Sandra Molina
on Oct 27, 2024Verified
The market for beef is in long-run equilibrium at $3.25 per pound.The announcement that mad cow disease has been discovered in the United States reduces the demand for beef sharply,and the price falls to $2.00 per pound.If the long-run supply curve is horizontal,when the long-run equilibrium is reestablished,the price will be:
A) $3.25 per pound.
B) $2.00 per pound.
C) greater than $2.00 per pound but less than $3.25 per pound.
D) More information is needed to answer this question.
Long-Run Supply Curve
A curve that shows the relationship between market prices and quantities supplied over a period when all production inputs are variable.
Mad Cow Disease
A neurological disorder in cattle that can be transmitted to humans, causing a fatal brain disease.
- Elucidate how shifts in market circumstances bring about alterations in supply and demand in the long-term.
Verified Answer
YG
Learning Objectives
- Elucidate how shifts in market circumstances bring about alterations in supply and demand in the long-term.
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