Figure 3-6
In Figure 3-6, suppose D ₁ and S ₁ indicate initial conditions in the market for ice cream. Which of the following changes would tend to cause a shift from S ₁ to S ₂ in the market for ice cream?

Question

Figure 3-6

In Figure 3-6, suppose D ₁ and S ₁ indicate initial conditions in the market for ice cream. Which of the following changes would tend to cause a shift from S ₁ to S ₂ in the market for ice cream?

Quizplus · Accepted Answer

A decrease in the price of milk, an ingredient used to produce ice cream, would shift the supply curve to the right, from S ₁ to S ₂, as producers would be able to produce ice cream at a lower cost and would therefore be willing to supply more ice cream at any given price.

Figure 3-6 In Figure 3-6, Suppose D 1 and S 1 Indicate

Figure 3-6 In Figure 3-6, Suppose D ₁ and S ₁ Indicate