If there are widespread press reports about the dangers of contracting "mad cow disease" by consuming beef from Canada, what is the likely economic effect on the U.S. demand curve for beef from Canada?
A) no change
B) a shift of the demand curve for beef to the right
C) a movement down along the demand curve for beef to the right
D) a shift of the demand curve for beef to the left

Question

Quizplus · Accepted Answer

The widespread press reports about the dangers of contracting "mad cow disease" by consuming beef from Canada would result in a shift of the demand curve for beef to the left. This means that consumers would reduce their demand for beef from Canada due to concerns about safety, resulting in a decrease in the quantity demanded at every price point. As a result, the equilibrium price for beef from Canada would decline as well.

If There Are Widespread Press Reports About the Dangers of Contracting