Leather belts and leather shoes are substitutes in production. If style changes increase the demand for leather belts, the supply curve of leather shoes will shift

Question

Quizplus · Accepted Answer

If there is an increase in demand for leather belts, the supply of leather shoes will shift leftward because producers will be using more resources to produce leather belts instead of leather shoes. This will decrease the supply of leather shoes, leading to a rise in the equilibrium price of leather shoes.

Leather Belts and Leather Shoes Are Substitutes in Production