Multiple Choice
Beef and leather belts are complements in production. If people's concern about health shifts the demand curve for beef leftward, the result in the market for leather belts will be a
A) higher equilibrium price for a leather belt because there is an increase in the supply of leather belts.
B) lower equilibrium price for a leather belt because there is a decrease in the supply of leather belts.
C) lower equilibrium price for a leather belt because there is an increase in the supply of leather belts.
D) higher equilibrium price for a leather belt because there is a decrease in the supply of leather belts.
Correct Answer:
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