7. Due to Mad Cow Disease scares, a new government regulation forces beef producers to maintain records on all cattle they buy and sell so that contaminated beef can be traced back to the farm where the animal was raised. This is expected to increase the marginal cost of beef production by an amount equivalent to 15% of beef prices. That is, the extra costs decrease the per cwt profit of beef production equivalent to loss in profits if the per cet price fell 15%. Using an equilibrium displacernent model, calculate how beef prices and quantities will respond to the new animal identification regulation.