Beef and leather are considered to be complements-in-production. What will happen to the demand or supply curve of leather if the price of beef falls, ceteris paribus?
Supply and Demand
The concept of supply and demand shows us how a market works and how producers and consumers communicate. The price and quantity of goods and services are determined by supply and demand curves. Any shifts in supply and demand can affect the equilibrium price and quantity of the product sold. It will also have an effect on producer and customer incentives. The amount of a product that is delivered into the market is referred to as supply. Since it is more profitable for companies to raise production at higher costs, the supply curve slopes upward. The quantity of a product that customers want to buy at various prices is known as demand. Less would be demanded at higher prices.
Answer and Explanation:
Beef and leather belts are complements-in-production. In other words, as the production of beef rises, so does the production of leather belts, and...
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fromChapter 11 / Lesson 6
An important part of marketing is establishing competitive prices for goods and services. Learn about supply and demand, and understand the difference between elastic and inelastic demand. Explore how marketers consider supply and demand, price equilibrium, and price elasticity when setting prices for their company's goods and services.