Which factor is MOST likely to shift the supply of milk to the right?
A)a tax on each gallon of milk produced
B)an increase in household income,milk being a normal good
C)a decrease in the price of feed given to dairy cows
D)the bankruptcy of many small dairy farms

Question

Quizplus · Accepted Answer

A decrease in the price of feed given to dairy cows would lower the production cost for dairy farmers, which means they would be willing and able to produce more milk at each price level, shifting the supply curve of milk to the right.

Which Factor Is MOST Likely to Shift the Supply of Milk