Question

In 2014, a drought in the Midwest raised grain prices, leading to a decline in the size of cattle herds. Ultimately, the price of ground beef rose from about $3 a pound to over $4 by 2015. Demonstrate graphically the effect of the drought on equilibrium price and quantity in the ground beef market.

Answer 1

please check the attached image for a graphical representation

Step-by-step explanation:

As a result of the drought, the supply of ground beef would fall. This would lead to a leftward shift of the demand curve. As a result equilibrium price would rise and equilibrium quantity would fall