When the price of product Z rises, the supply of product Y may be affected in a few different ways, depending on the relationship between the two products.
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Joint Products: If Y and Z are joint products (i.e., they are produced together from the same raw materials or process), an increase in the price of Z may lead to an increase in the supply of Y. This is because producers may allocate more resources to the production of the combined output, as they can realize higher total revenue from selling both products. Therefore, the supply curve for product Y could shift to the right.
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Substitutes in Production: If Y and Z are substitutes in production (meaning that resources can be used to produce either Y or Z), then an increase in the price of Z may incentivize producers to shift their production towards Z, potentially reducing the supply of Y. In this case, the supply curve for Y might shift to the left.
The overall effect on the supply of Y when the price of Z rises will depend on the specific nature of the relationship between the two products in production. If Y and Z are closely related as joint products, the supply of Y may increase. If they are substitutes in production, the supply of Y may decrease.
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