A fall in the price of milk, used in the production of ice cream, will
A) decrease the supply of ice cream.
B) increase the supply of ice cream.
C) cause a movement along the supply curve of ice cream.
D) have no effect on the supply of ice cream.

Question

Quizplus · Accepted Answer

A fall in the price of milk, used in the production of ice cream, will lower the production costs for ice cream makers, leading to an increase in the supply of ice cream. Therefore, option B is the correct choice.

A Fall in the Price of Milk, Used in the Production