Farm land can be used to produce either cattle or wheat. If the demand for cattle increases, what will happen in the market for wheat?
A) The demand for wheat will decrease.
B) The supply of wheat will decrease.
C) The supply of wheat will increase.
D) The demand for wheat will increase.

Question

Quizplus · Accepted Answer

If the demand for cattle increases, farmers may shift their production towards cattle, reducing the supply of wheat. This would cause a decrease in the supply of wheat, but would not necessarily directly affect the demand for wheat. Therefore, the correct answer is B.

Farm Land Can Be Used to Produce Either Cattle or Wheat