Recent advances in technology have made vegetarian meals far cheaper to produce. Assuming that vegetarian meals and beef are substitutes, what would be the expected change in the demand for beef, ceteris paribus?(1 point)

Question

Responses

The demand for beef would be unaffected.
The demand for beef would be unaffected. - no response given

It is impossible to tell from the information provided.
It is impossible to tell from the information provided. - incorrect

The demand for beef would increase.
The demand for beef would increase. - no response given

The demand for beef would decrease.

Answer 1

Given that vegetarian meals have become cheaper to produce and are substitutes for beef, we would expect the demand for beef to decrease. This is because as vegetarian meals become more affordable, consumers are likely to opt for them instead of beef, leading to a decline in the demand for beef, ceteris paribus.

So, the correct response is:

The demand for beef would decrease.