Answer to Question #160723 in Economics for drestar punky

Question

After a good maize crop in the North West Province in 2018, the cost of cattle feed fell leading 

to a decrease in the price of beef. The change in the price of beef was proportionately smaller 

than the change in quantity beef demanded. The reason for this is 

[1] the supply of beef is elastic. 

[2] the supply of beef is inelastic. 

[3] the demand for beef is elastic. 

[4] the demand for beef is inelastic.

Answer 1

If the change in the price of beef was proportionately smaller than the change in quantity beef demanded, then the reason for this is that the demand for beef is elastic.

So, the correct answer is [3].