Leather and beef are jointly produced such that an increase in the production of one results in an equal increase in the production of the other. An increase in the demand for leather will most likely cause

An increase in the demand for leather will most likely cause an increase in the demand for beef in the short run.

Explanation:

We can establish from the question that the two products are jointly produced. The two products are simply - Leather and Beef.

There's thus a direct relationship between the production of one and the other. That is, an increase in the production of leather causes an equal increase in the production of beef.

Having considered that, it is important to underscore the general human behaviors to issues on Demand. A rational individual will buy more of a product if the price is low. The more the demand, the more the increase in production.

For leather and beef, there is a critical factor that necessitate there joint production. This is that the byproducts from the production of one, say, Beef, will form an input in the production of the other. This relationship further lends credence to our foregoing assertion that the both products share direct relationship. Using the byproducts obtained from the production of one as an input will not increase the economies of scale of the other, it'll lead to an equal increase in the production levels.

Thus, an increase in the demand for leather signals an increase in the production of leather. Hence, with increase in production of leather, there's an equal increase in the production of beef with direct consequence on product demand, while taking advantage of the economies of scale derived from, and the competitive pricing.

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