Pork from pigs can be used to produce bacon or sausage, but not both. If the price of bacon falls 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 more expensive.
D)the demand for bacon will increase.

Question

Pork from pigs can be used to produce bacon or sausage, but not both. If the price of bacon falls 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 more expensive.
D)​the demand for bacon will increase.

Quizplus · Accepted Answer

If the price of bacon falls, the demand for bacon will increase as it becomes more affordable, and therefore the supply of pork used for bacon production will decrease. This will lead to an excess supply of pork that can be used to produce sausage, which will cause the price of sausage to fall.

Pork from Pigs Can Be Used to Produce Bacon or Sausage