Farmers can choose to produce eggs or milk. If there is an increase in the price of milk then what will be the effect in the egg market?
A) The quantity of eggs demanded will increase.
B) Egg demand will decrease.
C) Egg supply will increase.
D) Egg supply will decrease.

Question

Quizplus · Accepted Answer

If the price of milk increases, farmers may switch from producing eggs to producing milk to take advantage of the higher prices, leading to a decrease in the supply of eggs in the market.

Farmers Can Choose to Produce Eggs or Milk