Use of bovine growth hormone (BGH) on cattle dramatically increases the milk output of dairy cows. Dairy farmers in Wisconsin vigorously oppose permitting the drug's use over concerns of an excess supply and a consumer reaction on the purity of food issue that could put many of them out of business. Which of the graphs in Figure 4-13 is consistent with these concerns?
A) 1
B) 2
C) 3
D) 4

Question

Use of bovine growth hormone (BGH) on cattle dramatically increases the milk output of dairy cows. Dairy farmers in Wisconsin vigorously oppose permitting the drug's use over concerns of an excess supply and a consumer reaction on the purity of food issue that could put many of them out of business. Which of the graphs in Figure 4-13 is consistent with these concerns?
A) 1 
B) 2 
C) 3 
D) 4

Quizplus · Accepted Answer

Graph 2 shows a sharp increase in milk production per cow. This could be indicative of the use of BGH, which is known to increase milk production in cattle. The concerns of excess supply and potential consumer backlash are reflected in the downward sloping demand curve on the same graph, which suggests reduced demand for dairy products at higher prices.

Use of Bovine Growth Hormone (BGH) on Cattle Dramatically Increases