Pork can be used to produce bacon or sausage, but not both.If the price of bacon rises for some reason, then, everything else equal,
A)the price of sausage will rise.
B)the price of sausage will fall.
C)the resources used in raising Pork will become more expensive.
D)the resources used in raising Pork will become less expensive.

Question

Quizplus · Accepted Answer

Bacon and sausage are both produced from pork, so if the price of bacon rises, it becomes more profitable for producers to focus on producing bacon instead of sausage. This decrease in supply of sausage will lead to an increase in its price, hence the price of sausage will rise. The resources used in raising Pork may or may not become more or less expensive depending on the reason for the rise in bacon prices.

Pork Can Be Used to Produce Bacon or Sausage, but Not