Asked by Kanidra Stringer on May 11, 2024
Verified
Which factor 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
Tax on Milk
A specific fiscal policy imposing a financial charge on the sale or consumption of milk.
Household Income
The combined income of all members of a household, often used as a measure of the economic status of the household.
Price of Feed
The cost of food given to livestock, which can significantly affect agricultural production costs and pricing.
- Understand the factors that cause an augmentation or lessening in the supply of a merchandise.
- Explore the relationship between input costs and the supply level of goods.
Verified Answer
CB
Christiane BlessmannMay 14, 2024
Final Answer :
C
Explanation :
A decrease in the price of feed given to dairy cows would lower the production cost for dairy farmers, which means they would be willing and able to produce more milk at each price level, shifting the supply curve of milk to the right.
Learning Objectives
- Understand the factors that cause an augmentation or lessening in the supply of a merchandise.
- Explore the relationship between input costs and the supply level of goods.
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