Suppose that dangerous bacteria are found in some of the ground beef sold
Question # 00105467
Posted By:
Updated on: 09/20/2015 08:44 AM Due on: 10/20/2015
3. Suppose that dangerous bacteria are found in some of the ground beef sold in grocery stores. Whathappens in the market for ground beef? (For the purposes of this problem, the short run is one week.)
(a) How could this event shift the short run supply curve?
(b) How could this event shift the short run demand curve?
(c) Based on your answers to (a) and (b), what can we predict about the short run changes in theequilibrium price and quantity?
(d) If the short run supply curve is perfectly inelastic, then how does this affect your answer to (c)?(e) What is a realistic assumption about the elasticity of short run supply?
-
Rating:
/5
Solution: Suppose that dangerous bacteria are found in some of the ground beef sold