Consider the graph. What would most likely be the cause of a shift from D1 to D2?

The price of milk increases. Which of the following is NOT part of the likely chain of events that follows from this price change?

A) Some milk consumers reduce their consumption of milk. B) Milk producers increase their production of milk. C) The producers of feed for dairy cows increase production. D) The manufacturers of milking machines lay off some workers.

A firm has the choice of offering "dirty" jobs that are likely to cause severe health problems for its workers or of offering "clean" jobs by installing safety equipment at a cost of $5 per hour per employee that will substantially reduce the chances of health problems. The firm will

A. install the safety equipment if workers can ascertain whether they are working a dirty or a clean job. B. never willingly choose to install the costly safety equipment. C. willingly install the safety equipment if workers are willing to be paid $7 per hour less in a clean job than in a dirty job. D. install the safety equipment if workers are willing to be paid $3 per hour less in a clean job than in a dirty job. E. never install the safety equipment without a government subsidy to do so.