Figure 3-6

-In Figure 3-6,suppose D₁ and S₁ indicate initial conditions in the market for ice cream.Which of the following changes would tend to cause a shift from S₁ to S₂ in the market for ice cream?

Question

Figure 3-6
 
-In Figure 3-6,suppose D₁ and S₁ indicate initial conditions in the market for ice cream.Which of the following changes would tend to cause a shift from S₁ to S₂ in the market for ice cream?

Quizplus · Accepted Answer

A decrease in the price of milk, an ingredient used to produce ice cream, would lower production costs, leading to an increase in supply, thus shifting the supply curve from S₁ to S₂.

Figure 3-6 -In Figure 3-6,suppose D₁ and S₁ Indicate Initial Conditions in Indicate