Exhibit 4-2
-Consider Exhibit 4-2 which shows 3 supply curves for milk.Which of the following would shift the supply curve for milk from S₁ to S₂?

Question

Exhibit 4-2 -Consider Exhibit 4-2 which shows 3 supply curves for milk.Which of the following would shift the supply curve for milk from S₁ to S₂?

Quizplus · Accepted Answer

An increase in the yield per dairy cow due to a new and improved cattle food will lead to an increase in milk supply at all possible prices. Therefore, this will shift the supply curve to the right from S₁ to S₂. None of the other options would shift the supply curve in this manner.

Exhibit 4-2 -Consider Exhibit 4-2 Which Shows 3 Supply Curves for Milk.Which