Which of the following would NOT cause a change in the supply of milk?
A) an increase in the cost of feed for cows
B) the discovery of growth hormones to stimulate the milk production of cows
C) an increase in government subsidies to dairy farmers
D) an increase in the price of milk

Question

Quizplus · Accepted Answer

An increase in the price of milk would cause a change in the quantity supplied of milk, not the overall supply. The other options would all potentially affect the supply of milk. A increase in the cost of feed for cows would increase production costs for dairy farmers and potentially decrease their supply of milk. The discovery of growth hormones to stimulate milk production would increase the amount of milk that dairy cows can produce and therefore increase the overall supply. An increase in government subsidies to dairy farmers would incentivize dairy farmers to increase production and therefore increase the overall supply of milk.

Which of the Following Would NOT Cause a Change in the Supply