Pork from pigs 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 to raise pigs will become less expensive.
D)the demand for bacon will decrease.

Question

Pork from pigs 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 to raise pigs will become less expensive.
D)​the demand for bacon will decrease.

Quizplus · Accepted Answer

Since pork can only be used to produce either bacon or sausage, an increase in the demand for bacon will lead to a decrease in the supply of pork available for sausage production. With lower supply of pork for sausage production, the price of sausage will rise.

Pork from Pigs Can Be Used to Produce Bacon or Sausage