Suppose a recent epidemic of mad cow disease causes the government to mandate that thousands of cows be put down. What effect will this have on the market for leather shoes?

Question

Quizplus · Accepted Answer

The mandated culling of cows will decrease the supply of leather, which will likely increase the cost of producing leather shoes. As a result, the price of leather shoes may increase, and the quantity supplied may decrease. Therefore, the market for leather shoes will be affected, and the supply of leather shoes will decrease.

Suppose a Recent Epidemic of Mad Cow Disease Causes the Government