This article was commenting on how beef prices have are rising. According to economists with the U. cattle prices are at the highest they have ever been in history. The prices have enhanced by 34% since July, and this month, the benchmark price of Nebraska choice steers went to $116 per 100 pounds, a drastic change from $90 per 100 pounds. Last year, the price was $64 per 100 pounds. Choice T-bone steak's prices have doubled since three weeks ago. These prices have grown because of several factors. First, the consumer demand has increased almost 10% since 1998. The cause of the increased demand is because of the mounting popularity of high-protein diets, such as South Beach diet and the Atkins diet. Second, the U.S banned Canadian import cattle and beef five months ago because of the mad cow disease. .
This article relates to our class topic regarding supply and demand. Because demand for beef has increased, supply has decreased. The increased consumer intake of beef has caused a falling supply of cattle. There is a shortage in cattle, meaning a shortage in the supply. This is one of the determinants of supply, and thus has caused a change in supply. Because of this shortage of supply and the demand has stayed the same so far, the prices have increased because there is more competition for the beef, which is another determinant of supply. Because of this change in prices, quantity demanded may also change, but we don't know yet, because the prices in groceries have not changed yet. This also relates to our class topic of inflation. Because the prices have went up, it causes inflation. This would be a demand-pull inflation because the demand for beef has increased faster than the productivity capacity. Enough beef can't be produced to fulfill everyone's demand because there aren't enough cattle, and so they have to raise the prices. .
