Definition
- Prices of related goods in production
- The prices of related goods in production are those of goods made with the same resources, or made alongside this one, which change what supplying this good is worth.
Example
Can you think of an example of prices of related goods in production?
Dearer wheat leads farmers to plant wheat instead of barley, so barley supply shifts left. Dearer beef means more cattle are raised, so more leather is supplied at every price.
Test yourself
Can you name the six factors that shift supply?