Drought on the equilibrium price and quantity of beef

Reference no: EM13689542

The southern United States is in the midst of a severe drought. Texas has suffered estimated crop and livestock losses opf $7.62 billion since 2010 (ehwn the drought began). These losses have largely stemmed from lack of water needed to maintain cattle stocks. Ranchers have thereby been compelled to sell off much of their herds for slaughter.

A. What was the immediate effect of the drought on the equilibrium price and quantity of beef in the United States?

B. Beef prices were at record highs during the summer of 2014. In light of your answers to Part A, provide a justification for this observation.

Reference no: EM13689542

Questions Cloud

Analyst believe apple needs to do to calm investors : Why do investors often buy or sell stock when new information is released about a firm? What does the analyst believe Apple needs to do to calm investors?

About the cobb-douglas preference : What information do you need to find out whether a Cobb-Douglas utility function describe substitute, complement, or neither goods? How do you determine which is which?

Determine value of a life saved by the experimental protocol : Suppose the government has an experimental treatment that cures ebola in some patients and makes other patients who have contracted ebola more likely to die. Suppose that at time period 0, half of patients who contract ebola die from ebola in the abs..

Quantity at the uc davis coho for the breakfast burritos : Consider the market for breakfast burritos at the UC Davis CoHo during a typical school day. Assume that there is only one type of burrito.

Drought on the equilibrium price and quantity of beef : The southern United States is in the midst of a severe drought. Texas has suffered estimated crop and livestock losses opf $7.62 billion since 2010 (ehwn the drought began).

Draw a set of indifferent curves : Draw a set of indifferent curves that illustrate the preferences suggested by the following statements. Each subpart must have its own diagram.

Draw a picture showing both the marginal cost curve : Fangorn Inc., a forestry firm, faces a constant marginal cost for producing firewood of 2 gold coins per cord. As the firm’s uses very rudimentary equipment, its fixed costs are only 10 gold coins.

Suppose that she invests in a college education : Suppose that she invests in a college education, expecting to get a better and higher wage job. Show how her optimal stock of health capital changes by the age of 30 due to the increased wage.

Supply of fossil fuels like coal and petroleum : Suppose that the supply of fossil fuels like coal and petroleum will become more and more scarce in the next fifty year.

User Account

All Pages