>In both the real and hypothetical cases, the reduced demand for one material should result in an increased price for the other material, since the price of pro

>In both the real and hypothetical cases, the reduced demand for one material should result in an increased price for the other material, since the price of producing a cow is independent of the sale price of its byproducts. This would eventually reduce demand of the popular product (to a degree depending on how elastic its demand is) Strictly speaking this is a reduction (left-shift) in supply of beef, which results in lower quantity demanded as the equilibrium moves left along the static demand curve (as you said, in degree corresponding to its elasticity). Interestingly I can't think of a word for that sort of positive cross-price elasticity of supply, despite cross-price elasticity of demand being an Econ 101 topic (substitute/complementary goods). Here's a neat writeup on the dearth of attention given to that concept: https://pdfs.semanticscholar.org/0f78/7d112ad2bd54ee6e604af64b0ce6fbca2c66.pdf https://pdfs.semanticscholar.org/0f78/7d112ad2bd54ee6e604af6...