Pork Can Be Used to Produce Bacon or Sausage, but Not

question 150

Multiple Choice

Pork 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 in raising Pork will become more expensive.
• D)the resources used in raising Pork will become less expensive.

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Definitions:

Equilibrium Price

The price at which the quantity of a good or service supplied is equal to the quantity demanded, resulting in no net surplus or shortage in the market.

Natural Gas

A fossil fuel used as a source of energy for heating, cooking, and electricity generation, consisting primarily of methane.

Supply And Demand

The fundamental economic model that explains the interaction between the quantity of a good or service that producers wish to sell and the quantity that consumers wish to buy.

Standardized Product

A product that is uniform in quality and characteristics, produced in large volumes, and by many different firms.