Question

Consider the market for chicken. An increase in the price of beef will a. decrease the demand for chicken, resulting in a lower price and a smaller amount of chicken purchased in the market. b. decrease the supply of chicken, resulting in a higher price and a smaller amount of chicken purchased in the market. c. increase the demand for chicken, resulting in a higher price and a greater amount of chicken purchased in the market. d. increase the supply of chicken, resulting in a lower price and a greater amount of chicken purchased in the market. 

          Consider the market for chicken. An increase in the price of beef will
a. decrease the demand for chicken, resulting in a lower price and a smaller amount of chicken purchased in the market.

b. decrease the supply of chicken, resulting in a higher price and a smaller amount of chicken purchased in the market.
c. increase the demand for chicken, resulting in a higher price and a greater amount of chicken purchased in the market.
d. increase the supply of chicken, resulting in a lower price and a greater amount of chicken purchased in the market.
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Added by Gina W.

Principles of Economics
Principles of Economics
Gregory Mankiw 8th Edition
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Consider the market for chicken. An increase in the price of beef will a. decrease the demand for chicken, resulting in a lower price and a smaller amount of chicken purchased in the market. b. decrease the supply of chicken, resulting in a higher price and a smaller amount of chicken purchased in the market. c. increase the demand for chicken, resulting in a higher price and a greater amount of chicken purchased in the market. d. increase the supply of chicken, resulting in a lower price and a greater amount of chicken purchased in the market.
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Transcript

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00:01 So here we are thinking about a market for chicken, right? so let's draw that market.
00:05 It never hurts to sketch out your ideas.
00:08 There's downward sloping demand curve and an upward sloping supply curve.
00:12 And we need to think about the impact of an increase in the price of beef.
00:16 So the price of beef is going up.
00:21 Now, this is what i would call a related good.
00:24 You need to know here that beef and chicken have a relationship to each other.
00:29 And in particular, they're what you would call substitutes.
00:34 Because they're both sort of options for dinner, right? you could eat beef to get your protein.
00:38 You could eat chicken to get your protein...
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