A decrease in the price of milk (and ingredient of ice cream) will result in a(n):

Question

Quizplus · Accepted Answer

A decrease in the price of milk, an ingredient of ice cream, would decrease the production costs for ice cream producers. This would lead to an increase in the supply of ice cream as it would become more profitable for producers to produce ice cream at a lower cost. Therefore, there would be a rightward shift of the supply curve of ice cream.

A Decrease in the Price of Milk (And Ingredient of Ice