Answer to Question #323365 in Microeconomics for jacky

Question

An increase in the production of beef will lead to a decrease in the production of leather (made from cattle hides).

Note, you will lose 50% of the mark for this question if you choose the incorrect option.

Answer 1

True. This is because their will be surplus supply for cattle hides and production cost will be low for leathers thus earning low interest rates for leathers. Therefore it results to decrease in its production.