for the reason why beef became more expensive, there are possibly three main aspects. First reason is the rise in the cost of breeding and the rise in the price of feed raw materials. Secondly, because cattle have a long growth cycle and low fertility, farmers feed for a long time and increase their cost, thereby raising the price of fresh beef. Thirdly, affected by environmental policies and other factors, the small farms have withdrawn from the market, and the volume of fresh beef on the market has decreased. The law of supply states that there is a positive relationship between price and quantity supplied. Since the price of beef per pound rose, suppliers want to make more benefits, so that they increased the production of beef, resulting in the increase of supply. Nevertheless, beef pertains to agricultural products, the price elasticity of supply is less than one. So, the change of supply curve just has a slight movement to upper right. To contrast, as the law of demand states, there is an inverse relationship between price and quantity demanded. The increase of price will decrease the quantity demanded of beef. At the meantime, as the substitute goods of beef, when the import price of pork fell, consumers tend to purchase more pork rather than beef, so that the demand of beef is reduced. Moreover, assuming consumer income remain unchanged, the increase of beef price means that consumers should pay more money to buy same quantity of beef, therefore when other condition is the same, rational people will decrease the demand of beef which is normal goods. For the reason that the cross-price elasticity of demand between beef and pork is positive, when the percentage price of pork is negative, the percentage demand of beef will also be negative. As a result, the demand of beef will decrease. In the diagram, the demand curve shifts to the left.</span><p class="MsoNormal" style="text-indent:14.0pt;mso-char-indent-count:1.0"><span lang="EN-US" style="font-size:14.0pt;font-family:"Times New Roman","serif""><o:p></o:p></span></p>"/>
for the reason why beef became more expensive, there are possibly three main aspects. First reason is the rise in the cost of breeding and the rise in the price of feed raw materials. Secondly, because cattle have a long growth cycle and low fertility, farmers feed for a long time and increase their cost, thereby raising the price of fresh beef. Thirdly, affected by environmental policies and other factors, the small farms have withdrawn from the market, and the volume of fresh beef on the market has decreased. The law of supply states that there is a positive relationship between price and quantity supplied. Since the price of beef per pound rose, suppliers want to make more benefits, so that they increased the production of beef, resulting in the increase of supply. Nevertheless, beef pertains to agricultural products, the price elasticity of supply is less than one. So, the change of supply curve just has a slight movement to upper right. To contrast, as the law of demand states, there is an inverse relationship between price and quantity demanded. The increase of price will decrease the quantity demanded of beef. At the meantime, as the substitute goods of beef, when the import price of pork fell, consumers tend to purchase more pork rather than beef, so that the demand of beef is reduced. Moreover, assuming consumer income remain unchanged, the increase of beef price means that consumers should pay more money to buy same quantity of beef, therefore when other condition is the same, rational people will decrease the demand of beef which is normal goods. For the reason that the cross-price elasticity of demand between beef and pork is positive, when the percentage price of pork is negative, the percentage demand of beef will also be negative. As a result, the demand of beef will decrease. In the diagram, the demand curve shifts to the left.</span><p class="MsoNormal" style="text-indent:14.0pt;mso-char-indent-count:1.0"><span lang="EN-US" style="font-size:14.0pt;font-family:"Times New Roman","serif""><o:p></o:p></span></p>"/>
As
for the reason why beef became more expensive, there are possibly three main
aspects. First reason is the rise in the cost of breeding and the rise in the
price of feed raw materials. Secondly, because cattle have a long growth cycle
and low fertility, farmers feed for a long time and increase their cost,
thereby raising the price of fresh beef. Thirdly, affected by environmental
policies and other factors, the small farms have withdrawn from the market, and
the volume of fresh beef on the market has decreased. The law of supply states
that there is a positive relationship between price and quantity supplied. Since
the price of beef per pound rose, suppliers want to make more benefits, so that
they increased the production of beef, resulting in the increase of supply. Nevertheless,
beef pertains to agricultural products, the price elasticity of supply is less
than one. So, the change of supply curve just has a slight movement to upper
right. To contrast, as the law of demand states, there is an inverse relationship
between price and quantity demanded. The increase of price will decrease the
quantity demanded of beef. At the meantime, as the substitute goods of beef,
when the import price of pork fell, consumers tend to purchase more pork rather
than beef, so that the demand of beef is reduced. Moreover, assuming consumer
income remain unchanged, the increase of beef price means that consumers should
pay more money to buy same quantity of beef, therefore when other condition is
the same, rational people will decrease the demand of beef which is normal
goods. For the reason that the cross-price elasticity of demand between beef
and pork is positive, when the percentage price of pork is negative, the
percentage demand of beef will also be negative. As a result, the demand of
beef will decrease. In the diagram, the demand curve shifts to the left.
