Final answer:
The increase in cattle results in a decrease in leather prices and an increase in beef prices. Hence, the correct answer is option 4.
Step-by-step explanation:
The increase in cattle can affect the prices of leather and beef in the following way:
Leather prices decrease and beef prices increase
When there is an increase in the supply of cattle, it often results in more beef being available in the market. The increased supply of beef, if demand remains constant or increases, may lead to lower beef prices due to the principle of supply and demand. On the other hand, the increase in the supply of cattle may lead to an increase in the supply of hides used for leather production. With more hides available, the prices of leather may decrease.
It's important to note that these relationships are influenced by various factors, and real-world market conditions may vary. Additionally, the type and quality of cattle, as well as the specific market dynamics for beef and leather, can impact the outcomes.