Answer to Question #189387 in Microeconomics for Tshepiso

Question

Use a graph to illustrate and explain how an increase in the price of beef biltong will affect the supply of steak.you only need to draw and explain the graph for steak

Answer 1

Solution:

An increase in the price of beef biltong will cause the supply curve for the steak to shift left. This is because the higher prices will decrease the supply of beef steaks. The resource cost for the beefsteak will increase hence the supply will decline.

 

This is depicted by the following graph:

The graph of steak.