Joint supply significantly influences the availability of related goods by altering their supply based on the production levels of a primary product.

In economic terms, joint supply describes a scenario where the production of one good, known as the main product, simultaneously results in the production of another good, referred to as the by-product. These goods are inherently interconnected within the production process, meaning that the supply of one directly impacts the supply of the other.

For instance, consider the relationship between beef and leather. When a farmer opts to increase beef production, more cows are slaughtered, which subsequently raises the supply of leather. Conversely, if the demand for beef declines and fewer cows are slaughtered, the supply of leather will also diminish. This illustrates a classic example of joint supply, where the production of one good ($\text{beef}$) directly affects the supply of another good ($\text{leather}$).

Joint supply can also influence the pricing of related goods. If the main product experiences a surge in demand leading to a price increase, the supply of the by-product will likely rise as well. This increase in supply may result in a decrease in the by-product’s price due to surplus. On the other hand, if demand for the main product falls, leading to a reduced supply of the by-product, the price of the by-product may increase due to its scarcity.

Furthermore, joint supply can create intriguing market dynamics. For example, if the by-product becomes more valuable than the main product, producers may shift their focus and primarily produce the main product to obtain the by-product. This shift can lead to significant changes in the supply and pricing of both goods.

In summary, joint supply is a vital concept that shapes the supply and pricing of related goods. A thorough understanding of this concept enables businesses to make informed decisions regarding their production and pricing strategies.