Milk can be used to produce cheese or butter.If the price of a pound of butter rises,what happens to the supply of cheese?
A) The supply of cheese increases.
B) The supply of cheese decreases.
C) The supply of cheese stays the same, and there is no change in the quantity supplied of cheese.
D) The supply of cheese stays the same, and there is a decrease in the quantity supplied of cheese.
E) The supply of cheese could increase, decrease, or stay the same depending on what happens to the supply of butter.

Question

Quizplus · Accepted Answer

If the price of butter rises, milk producers may shift their production towards butter, resulting in a decrease in the supply of milk available to make cheese. This decrease in the supply of milk for cheese production will lead to a decrease in the supply of cheese. Therefore, the supply of cheese will decrease if the price of butter rises.

Milk Can Be Used to Produce Cheese or Butter