Which of the following 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 and milk is a normal good
C)a decrease in the price of feed given to dairy cows
D)the bankruptcy of many small dairy farms

Question

Quizplus · Accepted Answer

A decrease in the price of feed given to dairy cows would reduce the cost of production for dairy farmers, which would encourage them to produce more milk at any given price. This would result in a rightward shift in the supply of milk. The other options would likely shift the supply of milk to the left.

Which of the Following Is Most Likely to Shift the Supply