What happens in the markets for beef, chicken and leather when a new health report declares that eating...?
i please want a true economical analysis. Thanks a million
Answer:
Therefore, beef becomes more of a substitute for chicken.
Beef demand will increase (shift) as some people may substitute it for chicken. Some people may have preferred the taste of beef, but eat chicken for health reasons and will now not worry about it.
Chicken demand will decrease (shift) as it now has a new substitute.
Leather supply will increase (shift) as it is a byproduct of beef production and more beef is being produced.
people are going to eat whatever they want. every week we hear new things about what we should eat. people just eat what they want. no new theory is going to change that.
demand shifts as stated above, but supply will remain the same, atleast in the short term. Beef takes along time to produce and is costly to produce. Although there is an increase in beef being imported from south america, the price of beef, due to cost of production and limited supply will stay the same. By the time it would take for america to increase its beef production to meet the change in demand the diet trend (shift in demand) would have passed and we will be on to the next craze. I hope its not atkins again.
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