A fall in the price of milk, used in the production of ice cream, will:

Question

Quizplus · Accepted Answer

A fall in the price of milk, a key ingredient in the production of ice cream, will reduce the production costs for ice cream manufacturers. This will result in an increase in the supply of ice cream, as the lower production costs will encourage ice cream producers to produce and sell more ice cream. Therefore, a fall in the price of milk will result in an increase in the supply of ice cream.

A Fall in the Price of Milk, Used in the Production