Exhibit 4.6

-A new cattle feed has been found to increase the amount of milk each cow produces. Which of the following is likely to be the impact on the market for milk if this cattle feed is used by most dairies?

Question

Exhibit 4.6
 
-A new cattle feed has been found to increase the amount of milk each cow produces. Which of the following is likely to be the impact on the market for milk if this cattle feed is used by most dairies?

Quizplus · Accepted Answer

The use of a cattle feed that increases milk production will lead to an increase in the supply of milk, as each cow is producing more. This will shift the supply curve of milk to the right, resulting in a higher quantity of milk at each price level, and potentially lower prices for consumers.

Exhibit 4.6 -A New Cattle Feed Has Been Found to Increase the Found