Which of the following would cause an increase
in the demand for beef
?
A.
Upper A decrease
in consumer incomes (beef
is a normal good).
B.
An increase
in the number of firms in the market.
C.
Upper A decrease
in the price of beef
.
D.
An increase
in the price of fish
,
a substitute for beef
.
C.
A decrease in the price of beef.
The options that would cause an increase in the demand for beef are:
C. A decrease in the price of beef.
D. An increase in the price of fish, a substitute for beef.
When the price of beef decreases (option C), consumers would be more inclined to buy more beef since it becomes cheaper. This would result in an increase in demand.
Similarly, if the price of fish (a substitute for beef) increases (option D), consumers may switch to buying more beef instead of fish. This would lead to an increase in the demand for beef.
To determine which of the given options would cause an increase in the demand for beef, we need to understand the factors that influence the demand for a product. The demand for beef is affected by various factors, including consumer income, the number of firms in the market, the price of beef, and the price of substitutes.
A. Upper A decrease in consumer incomes (beef is a normal good):
If consumer incomes decrease, it is likely that the demand for beef would also decrease because beef is a normal good. A normal good is one for which demand increases as income increases. Hence, this option would not cause an increase in the demand for beef.
B. An increase in the number of firms in the market:
The number of firms in the market does not directly affect the demand for beef. Changes in the number of firms in the market would typically impact the supply side rather than the demand side. Therefore, this option would not cause an increase in the demand for beef.
C. Upper A decrease in the price of beef:
A decrease in the price of beef can generally lead to an increase in demand. This is because lower prices make beef more affordable, encouraging consumers to buy more. Therefore, this option could cause an increase in the demand for beef.
D. An increase in the price of fish, a substitute for beef:
If the price of fish, which is a substitute for beef, increases, it could potentially lead to an increase in the demand for beef. As the price of fish becomes relatively more expensive, consumers may decide to switch to beef as a substitute, leading to an increase in demand for beef. Therefore, this option could cause an increase in the demand for beef.
In summary, options C (a decrease in the price of beef) and D (an increase in the price of fish) could cause an increase in the demand for beef.