Milk has an inelastic demand, and beef has an elastic demand. suppose that a mysterious increase in bovine infertility decreases both the population of dairy cows and the population of beef cattle by 50 percent. refer to scenario 5-4. the change in equilibrium price will be

The equilibrium price is the market value where the amount of goods provided is equal to the amount of goods necessitated. The scenario in 5-3 tells us that the equilibrium price will increase in both the milk and beef markets because there was an increase in demand and a decrease in supply that will cause an increase in equilibrium price.