Which of the following would cause a decrease in the supply of milk?
A)An increase in the price of cookies (assuming that milk and cookies are complements).
B)A decrease in the price of milk.
C)An increase the price of a product that producers sell instead of milk.
D)An increase in the number of firms that produce milk.

Question

Quizplus · Accepted Answer

An increase in the price of a substitute for milk would incentivize producers to switch from producing milk to the substitute, leading to a decrease in the supply of milk. The other answer choices do not directly impact the supply of milk.

Which of the Following Would Cause a Decrease in the Supply