Consider the market for chicken. An increase in the price of beef will??? a.decr
ID: 1252915 • Letter: C
Question
Consider the market for chicken. An increase in the price of beef will???a.decrease the demand for chicken,resulting in a lower price and a smaller amount of chicken purchased in the market
b.decrease the supply of chicken,resulting in a higher price and a smaller amount of chicken purchased in the market
c.increase the demand for chicken,resulting in a higher price and a greater amount of chicken purchased in the market
d.increase the supply of chicken,resulting in a lower price and a greater amount of chicken purchased in the market
Explanation / Answer
c. the supply of chicken is not influenced by beef at all. however, demand for chicken, an alternative good will increase as demand for beef falls. therefore, quantity demanded will increase and subsequently the price of chicken.