The prices of related goods matters when determining supply because it affects:

Question

Quizplus · Accepted Answer

The prices of related goods affect the cost of inputs that the producer uses to manufacture or produce the good. If the price of inputs has to go up to produce the good, the opportunity cost of production will also increase. As a result, producers may reduce their supply because their costs have gone up, and they may shift their production to other goods that now have a lower opportunity cost of production.

The Prices of Related Goods Matters When Determining Supply Because