Question
1. Suppose an increase in consumers' income causes a decrease in the demand for fish and an increase in the demand for beef; Which good
1. Suppose an increase in consumers' income causes a decrease in the demand for fish and an increase in the demand for beef; Which good is inferior and which is normal? How will the equilibrium price and quantity change for each good as a result of the change in income?
2. In the United States, corn is often used as an ingredient in animal feed for livestock. Why does an increase in the use of corn to make ethanol, an additive that is used in gasoline, raise the price of meat? Use supply and demand curves for the corn market and the meat market to explain your answer.
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