Suppose there is a new hormone that will increase the amount of milk each cow produces.If this hormone is adopted by many dairies, what will be the effect on equilibrium price and equilibrium quantity of milk?

Question

Quizplus · Accepted Answer

The adoption of the new hormone will increase the amount of milk supplied by each individual cow, leading to a shift in the supply curve to the right (an increase in supply). This will result in a lower equilibrium price, as there is more milk available in the market, and a higher equilibrium quantity, as consumers are willing and able to purchase more milk at the lower price.

Suppose There Is a New Hormone That Will Increase the Amount