Alberta ranchers can raise either cattle or sheep on their land.Which of the following would cause the supply of sheep to increase?
A)an increase in the price of sheep
B)a decrease in the price of cattle
C)an increase in the demand for cattle
D)an increase in the price of sheep feed

Question

Quizplus · Accepted Answer

If the price of cattle decreases, it may no longer be profitable for ranchers to raise cattle, leading them to switch to raising sheep instead. This would cause the supply of sheep to increase. The other options (increase in sheep price, increase in cattle demand, increase in sheep feed price) would not necessarily affect the decision to raise sheep vs. cattle.

Alberta Ranchers Can Raise Either Cattle or Sheep on Their