Final answer:
An increase in the price of sheep would cause the supply of sheep to increase, as it makes sheep farming more profitable and encourages ranchers to raise more sheep to meet the market demand.
Step-by-step explanation:
To determine which factor would cause the supply of sheep to increase, we must understand the relationship between input costs, the price of related goods, and technology or production changes. When the cost of production inputs decreases, or if there is an improvement in technology, supply will likely increase as it becomes cheaper or more efficient to produce the good in question. However, if the cost of inputs rises, the supply will decrease.
In this context, the options provided are:
- A decrease in the price of cattle
- An increase in the demand for cattle
- An increase in the price of sheep feed
- An increase in the price of sheep
If ranchers can raise either cattle or sheep, a change in the price or demand for cattle could influence their decision to produce one over the other. Specifically:
- If the price of cattle decreases, this would make raising cattle less profitable, possibly leading to ranchers switching to raise sheep instead, thus increasing the supply of sheep.
- If there is an increase in the demand for cattle, this would make raising cattle more profitable, potentially drawing resources away from sheep farming, therefore, this option would not increase the supply of sheep.
- An increase in the cost of sheep feed would make raising sheep more expensive, thus likely decreasing the supply of sheep, not increasing it.
- An increase in the price of sheep would make raising sheep more profitable, which could lead to an increase in their supply as ranchers may look to capitalize on the higher prices.
Therefore, the option that would cause the supply of sheep to increase is an increase in the price of sheep, as it enhances the profitability of sheep farming, prompting ranchers to supply more sheep to the market.