Trends in Beef Consumption

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Trends in Beef Consumption Crystal Higginbotham ECO/365 May 20, 2013 Janet Hunter Trends in Beef Consumption Even with the rise of poultry and fish consumption, red meat consumption is still in the lead as the highest proportion of meat consumed in the United States. Red meat can include beef, veal, pork, lamb, and mutton (Daniel, 2011). Why does red meat continue to be the highest consumed meat in America? In this paper we will discuss the utility derived from red meat, the equilibrium price assuming that supply remains the same, what has occurred to change the supply of the product assuming that the demand remains the same, and whether demand for red meat is elastic or inelastic. Utility Derived from Red Meat Red meat has been linked to allergies, cancer, cardio vascular disease and diabetes (Daniel, 2011). So why does red meat continue to be a huge part of the American diet? Even with its links to these health conditions people rely on red meat for protein, consisting of 40% of daily protein intake (Daniel, 2011). There is a correlation with red meat consumption and level of income. This is no surprise, as we often relate steak houses to fine dining and to be more expensive. However, the most popular red meat menu item can be found at almost every fast food restaurant in America, the hamburger. According to the Economist.com, “The average American eats three hamburgers a week, a collective effort that puts paid to 40 billion burgers annually. Despite cholesterol-phobia, the number of hamburgers and cheeseburgers consumed in restaurants has jumped by nearly a fifth since 1990” (para. 3). Equilibrium Price The price of beef increases as the average income increases. Assuming that supply remains the same for red meat, if red meat prices increase people have the opportunity to purchase the a

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