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Answer to Question #329493 in Economics of Enterprise for Portia
Question #329493
The maize grown in Mphumalanga is used primarily to feed livestock. Suppose that the current "foot and mouth disease" scare were to lead to a significant drop in the size of cattle herds nationwide. What impact would you expect in the market for maize?
Expert's answer
In this situation the demand for maize will decrease, so both equilibrium price and quantity of maize will decrease too.
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