For this activity, you must apply the factors that shift demand and supply to real-life scenarios:
a) For each of the following sets of statements, draw a diagram that illustrates the likely effect on the market for ground beef. In each case, indicate the impact on equilibrium price and quantity.
A salmonella outbreak occurs and is traced to ground beef.
The price of chicken increases.
The price of corn increases (cattle are feed with corn).
Wages for people who work in the slaughtering house decrease.