There is an increase in consumer income and beef is a normal good.
The correct answer and explanation is:
When there is an increase in consumer income and beef is a normal good, the demand for beef will increase.
A normal good is defined as a good for which demand increases when consumer income rises. This relationship between income and demand is typically positive, meaning that as consumers have more money to spend, they tend to purchase more of normal goods. Beef, being classified as a normal good, follows this pattern. When people experience a rise in their income, they are more likely to spend on goods that they consider desirable or higher in quality, which includes beef. As their purchasing power increases, they can afford more beef or higher-quality cuts of beef, thus increasing the overall demand for beef.
This phenomenon can be illustrated through the demand curve. In a typical market, when income increases, the demand curve shifts to the right, signifying that consumers are willing to buy more beef at any given price. In practical terms, consumers may choose to purchase beef more frequently or opt for larger quantities in response to their increased income. This shift in demand can lead to higher prices, especially if the supply of beef does not increase proportionally to meet the higher demand.
However, the magnitude of the shift depends on various factors, including the price elasticity of demand for beef. If beef has a high income elasticity of demand, the increase in demand will be more significant as consumer income rises. Conversely, if the income elasticity is low, the change in demand may be relatively smaller. In the case of beef, since it is generally considered a staple or desirable protein source, it is likely to have a relatively high income elasticity, and thus, a substantial increase in demand with rising consumer income.