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03-02-2008, 04:21 PM
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| Economics Question!!PLEASE HELP!? A hypothetical economy manufactures two types of meat: beef and pork. Publicity about mad cow disease causes a change in consumers' tastes away from beef and towards pork. Consumers and meat producers are both price-takers. 2.1. Consumers' willingness to pay for beef will______, while the value of the marginal product of labor of a worker in the beef industry will_______. A. Increase; increase B. Increase; decrease C. Decrease; increase D. Decrease; decrease      |
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03-02-2008, 04:22 PM
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| D. Decrease,decrease |
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03-02-2008, 04:22 PM
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| decrease, decrease... because if theres something wrong with beef... consumers wont spend the money for it.. so it decreases..... and since no one is buying it, production rates will also decrease its mainly like effects of consumer tastes and preferences |
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