If a producer can use its factors of production to produce either good A or good B, then a rise in the price of A

Name: If a producer can use its factors of production to produce either good A or good B, then a rise in the price of A
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Question

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When the price of good A increases, producers are incentivized to produce more of good A because it becomes more profitable. This shift in production focus can lead to a decrease in the supply of good B, as resources are reallocated from producing B to A.

If a Producer Can Use Its Factors of Production to Produce