A fall in the price of milk, used in the production of ice cream, will:
A. Decrease the supply of ice cream
B. Increase the supply of ice cream
C. Cause a movement along the supply curve of ice cream
D. Have no effect on the supply of ice cream
Answer: B
Economics
You might also like to view...
To signal to your insurance company that you are a low risk individual, you should
a. Accept an insurance policy with a high deductible b. Accept an insurance policy with a low deductible c. Accept an insurance policy with no co-payments d. None of the above
Economics
The elasticity coefficients of demand are 2.6, 0.5, 1.4, and 0.18 for demand schedules D1, D2, D3, and D4, respectively. A 2 percent price increase will result in an increase in total revenues in the cases of:
A. D1 and D3. B. D2 and D4. C. D1, D2, and D3. D. D1 and D4.
Economics