A leather company produces shoes and belts. What will the company do if it expects the price of shoes to rise in the near future?
A) It will enter into a new product line, such as jackets.
B) It will move resources from shoe to belt production, thereby decreasing the supply of shoes.
C) It will move resources from belt production to shoe production, thereby decreasing the supply of belts.
D) It will do nothing and continually evaluate the situation.
Correct Answer:
Verified
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A)
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