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A Fall in the Price of Raw Milk (Which Is

Question 3

Multiple Choice

A fall in the price of raw milk (which is used in the production of ice cream) will


A) have no effect on the supply curve of ice cream but cause a downward movement along the supply curve of ice cream.
B) decrease the supply of ice cream,causing the supply curve of ice cream to shift to the left.
C) increase the supply of ice cream,causing the supply curve to shift to the left.
D) increase the supply of ice cream,causing the supply curve of ice cream to shift to the right.
E) decrease the supply of ice cream,causing the supply curve to shift to the right.

Correct Answer:

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