Milk is an important ingredient in the production of ice cream.If the price of milk increases,then one would expect,holding all other things constant:
A)the supply curve for ice cream to shift left.
B)the supply curve for ice cream to shift right.
C)no change in the supply curve for ice cream.
D)a movement along the supply curve for ice cream curve,resulting in more ice cream supplied.

Question

Quizplus · Accepted Answer

An increase in the price of milk, a key ingredient in ice cream production, would lead to an increase in the cost of producing ice cream. This would cause ice cream producers to reduce their supply of ice cream, shifting the supply curve for ice cream to the left. Therefore, the correct answer is A.

Milk Is an Important Ingredient in the Production of Ice