7. From The Wall Street Journal (July 23, 1991): “Since peaking in 1976, per capita beef consumption in the United States has fallen by 28.6 percent . . . [and] the size of the U.S. cattle herd has shrunk to a 30-year low.”

a. Using firm and industry diagrams, show the shortrun effect of declining demand for beef. Label the diagram carefully and write out in words all of the changes you can identify.

b. On a new diagram, show the long-run effect of declining demand for beef. Explain in words.