In a market supply, what factor would cause a decrease in meals served?
A. lifting of excise taxes
B. government farm subsidies
C. high global demand for fuel
My grandmother says A. but i say B. whos right me or her? Someone help please!!
To determine which factor would cause a decrease in meals served in the market supply, we need to consider the impact of each factor on the food industry.
A. Lifting of excise taxes: This refers to the removal of taxes specifically imposed on certain food products. If excise taxes on meals are lifted, it would likely result in lower prices for consumers, which can positively influence demand and potentially lead to an increase in meals served. Therefore, this factor is unlikely to cause a decrease in meals served.
B. Government farm subsidies: Farm subsidies are financial assistance provided by the government to farmers to support their agricultural production. These subsidies can help reduce the production costs for farmers, allowing them to offer lower prices to food processors and eventually to consumers. Lower costs may incentivize food businesses to produce more meals, potentially leading to an increase in meals served. Therefore, the government farm subsidies are unlikely to directly cause a decrease in meals served.
C. High global demand for fuel: This factor refers to the increased need for fuel worldwide. While high global demand for fuel may indirectly impact the food industry by potentially increasing transportation and operational costs for food businesses, it does not directly cause a decrease in meals served. The impact on meals served would depend on how food businesses adjust their operations to compensate for the increased costs.
Based on the analysis above, it appears that neither you nor your grandmother is entirely correct. Both factors mentioned (A and B) are unlikely to directly cause a decrease in meals served. However, considering the potential indirect effects, such as changes in prices or production costs, further analysis and contextual information are necessary to provide a definitive answer.