For each of the following, explain what would happen to price, quantity and why.

2. A new strain of wheat was discovered, which raised yield.
4. The United Grain Growers organized an extensive advertising campaign
6. The government implemented a tax on each unit of wheat sold.
8. It was proven that a regular diet of flaxseed, rather than wheat, lengthens life.
10. Consumers who turn down beef and pork are faced with rising prices for substitute protein products, such as eggs, cheese and poultry.

2. Is demand for the following elastic or inelastic? Why?
3. Big Mac
4. 
   
5. Salt
6. 
   
7. Brain surgery
8. 
   
10. For each type of demand, identify a product and explain one reason for the demand:
11. elastic
12. 
    
13. inelastic
14. 
    
15. perfectly elastic
16. 
    
17. unitary elastic
18. 
    

Explain the meaning of the following cartoon, using supply and demand. byJohn Ditchburn

2. The market for beef is busily minding its own business when suddenly, it is faced with a major, successful advertising campaign by pork producers. Caught by surprise, the beef market responds with a price war that becomes excessive, as it lasts too long. (Assume pork and beef are substitutes for this problem.)
3. Sketch and explain in detail the graph of the original market for beef, then show and explain the impact of the pork advertising campaign.
4. 
   
5. Explain the impact of the pork advertising campaign on beef farmers, grocery stores and consumers (beef and pork).
6. 
   
7. Assume the beef farmers panic and ask the federal government for assistance. What advice would you give the government in response to the request for assistance?
8. 
   
9. What advice would you give the beef farmers? Explain with a graph as well as your explanation.
10. 
    

Answer rating: 100% (QA)

A new strain of wheat was discovered which raised yield Price With an increase in wheat yield due to the new strain the supply of wheat in the market will increase This will lead to a decrease in the ... View the full answer