Which of the following is most likely to shift the supply of milk to the right?
A)a tax on each gallon of milk produced
B)an increase in household income, milk being a normal good
C)a decrease in the price of feed given to dairy cows
D)the bankruptcy of many small dairy farms

Question

Quizplus · Accepted Answer

When the price of feed given to dairy cows decreases, it reduces the cost of producing milk. As a result, dairy farmers have a greater incentive to produce milk and may increase their supply of milk.

Which of the Following Is Most Likely to Shift the Supply