Oregon Brand
June 14th, 2011
Comments off
Beef as a Commodity Vs Beef as Brand Questions (Check Work)?
#1 – Which of the following demand curves best illustrates the demand for an individual cattle producer if his beef is considered a commodity (a product that is unspecialized and mass produced)?
Here’s the Graph: http://courses.aplia.com/images/fenner_beef/fenner_beef_v2.gif
Choices:
A.Curve IV
B. Curve I
C. Curve II
D. Curve III
My Answer: D – Curve III (because a commodity means there’s perfect competition – none better than the other)
#2 – Which of the following graphs best illustrates the demand curve for a cattle producer selling Oregon Trail Beef (brand name)?
Here’s the Graph (should be the same as the one above): http://courses.aplia.com/images/fenner_beef/fenner_beef_v2.gif
Choices:
A. Curve III
B. Curve IV
C. Curve II
D. Curve I
My Answer: B – Curve IV (quantity increase when demand increases – is less based on perfect competition).
So am I right or wrong on any of them?
#1
D. Curve III
#2
B. Curve IV
You are right for both,
“II” is demand curve but “I” is perfectly inelastic which means inability to adjust production.
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