Answer to Question #75344 in Economics of Enterprise for bryan
a) The supply of milk will increase.
b) The demand for milk will decrease.
c) The supply of milk will decrease.
d) There will be a movement along the supply curve for milk.
On the other point of view there can be no changes in supply side. Such situation occurs if the producer finds the substitute product other than red meat. In this case he/she will not face an increase in production costs and so will continue to work without any changes!
There can be situation when producer can find cheaper substitute to red meat as the input of production. For this case the right answer can also be a) the supply of milk will increase. In this case production costs will go down and the producer will increase the supply of milk.
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