A meat processing plant produces both steak and ground beef. What effect would rising market prices for steak have on the market for ground beef? There will be an increase in the quantity supplied of ground beef. The supply of ground beef will decrease. The supply of steak will decrease. The supply of ground beef will increase.

When market prices for steak rise, producers often allocate more resources towards steak production, as they seek to capitalize on the higher profit potential. This can lead to a decrease in the overall supply of ground beef, as less beef may be processed into ground beef due to the shift in focus. Additionally, as consumers notice the increase in steak prices, they may turn to ground beef as a more affordable alternative, potentially increasing its demand. This dual effect can create a complex dynamic in the market, influencing both supply and demand in different directions.