In an effort to reduce the surplus of dairy products, agricultural legislation paid dairy farmers to slaughter their herds and sell them to packinghouses (meat producers) in 1996-1997. How did this influence the market for beef?
A)demand increased, leading to higher beef prices
B)demand decreased, leading to lower beef prices
C)supply increased, leading to lower beef prices
D)supply decreased, leading to higher beef prices

Question

In an effort to reduce the surplus of dairy products, agricultural legislation paid dairy farmers to slaughter their herds and sell them to packinghouses (meat producers) in 1996-1997. How did this influence the market for beef?
A)​demand increased, leading to higher beef prices
B)​demand decreased, leading to lower beef prices
C)​supply increased, leading to lower beef prices
D)​supply decreased, leading to higher beef prices

Quizplus · Accepted Answer

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In an Effort to Reduce the Surplus of Dairy Products