Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Economics (https://www.askmehelpdesk.com/forumdisplay.php?f=101)
-   -   What is the effects of an increase in the price of meat on the supply of hide? (https://www.askmehelpdesk.com/showthread.php?t=784261)

  • Feb 12, 2014, 08:37 AM
    awazi sadala
    What is the effects of an increase in the price of meat on the supply of hide?
    What is the effects of an increase in the price of meat on the supply of hide?

    What will be the effect of an increase in the price of an item on the supply of the other?

    How does an increase in the price of a commodity affect the supply of a related commodity?
  • Feb 12, 2014, 09:03 AM
    talaniman
    Geez guy, please slow down with the reworded posts. You can keep all your questions HERE. Wait for answers please.
  • Feb 12, 2014, 11:45 PM
    paraclete
    well I hope you will rate this answer

    You need to consider what the two products are

    meat is usually the more expensive product while hides are a by-product

    when the price of meat rises, in an elastic market the number of animals slaughtered will rise

    However increases in meat prices are often the result of lower supply of animals for slaughter so the probability is that a rise in price signals a lower availability of hides

    If the price of hides rises it could signal additional availability of meat
    but the drivers will always be the price of meat and the availability of animals

    Study micro economics and the inter-connectability of markets

  • All times are GMT -7. The time now is 03:36 PM.