AP Microeconomics 難題: 真題

AP Microeconomics 難題: 真題

The answer is (B)

Demand for Leather is more and Demand curve shifts right, resulting in higher price and larger quantity..

Beef is the complement good to leather. While Leather production is more, the supply for beef (production) is incresing as well, resulting in right-shift supply curve for beef. As a result, price will decrease with a larger quantity of beef.