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Also there will never be a lack of beef. This is economics 101 that people have a problem grasping. As the price of beef (or anything) goes up, this is a signal
by seibelj 7y ago
Also there will never be a lack of beef. This is economics 101 that people have a problem grasping. As the price of beef (or anything) goes up, this is a signal to entrepreneurs to make more of it, until the price goes down again. This is why prices are so important - higher prices lead to more supply, bringing prices down. Thus as demand for beef worldwide increases, producers will supply more of it to meet demand.
- skybrian 7y agoProduction doesn't always increase as quickly or easily as economics 101 would have you believe. When there is a severe drought, there can be talk about towing icebergs but somehow it doesn't happen. Instead, people cut back on water usage. You need to look into how production is actually done in each market to understand how quickly producers can respond to changes in demand. (I'm not going to worry about beef, though, since there are good substitutes.)