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The Market for Milk Is Initially in Equilibrium

Question 149

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The market for milk is initially in equilibrium.Milk producers engage in an advertising program to encourage milk drinking, which succeeds in shifting consumer tastes toward drinking milk.More milk producers enter the market.Standard demand and supply analysis tells us that:
A.the equilibrium price and quantity of milk will rise.
B.the equilibrium price and quantity of milk will fall.
C.the equilibrium quantity of milk will rise, but we can't determine how the equilibrium price will be affected.
D.the equilibrium price of milk will rise, but we can't determine how the equilibrium quantity will be affected.

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