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 decrease production costs for ice cream producers, leading to an increase in supply and a shift from S ₁ to S ₂. The other choices, such as an increase in the price of sugar or a decrease in the price of frozen yogurt, would not directly affect the supply of ice cream and therefore would not cause a shift in the supply curve. Abnormally hot weather may temporarily increase demand for ice cream, but it would not cause a long-term shift in the supply curve.

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