Dress Shoes Price + P1 D Q1 Quantity Reductions in cattle herds and restrictions on imports reduce the suppl leather in your country and increase its price. In the domestic market fa shoes shown above, what happens as the increased price of leather rais cost of producing shoes? Select one: a. D shifts to the right, so P rises and Q rises. O b. S shifts to the right, so P falls and Q rises. O c. D shifts to the left, so P falls and Q falls. O d. S shifts to the left, so P rises and Q falls.

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter8: Understanding Markets And Industry Changes
Section: Chapter Questions
Problem 8.6IP
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Question
Dress Shoes
Price
P1
Q1
Quantity
Reductions in cattle herds and restrictions on imports reduce the supply of
leather in your country and increase its price. In the domestic market for dress
shoes shown above, what happens as the increased price of leather raises the
cost of producing shoes?
Select one:
a. D shifts to the right, so P rises and Q rises.
Ob. S shifts to the right, so P falls and Q rises.
c. D shifts to the left, so P falls and Q falls.
O d. S shifts to the left, so P rises and Q falls.
Transcribed Image Text:Dress Shoes Price P1 Q1 Quantity Reductions in cattle herds and restrictions on imports reduce the supply of leather in your country and increase its price. In the domestic market for dress shoes shown above, what happens as the increased price of leather raises the cost of producing shoes? Select one: a. D shifts to the right, so P rises and Q rises. Ob. S shifts to the right, so P falls and Q rises. c. D shifts to the left, so P falls and Q falls. O d. S shifts to the left, so P rises and Q falls.
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