Asked by Keshawn Johnson on Jul 18, 2024
Verified
A new cattle feed has been found to increase the amount of milk each cow produces.Which of these is a likely impact in the market for milk,if this cattle feed is used by most of the dairies?
A) A rightward shift of the supply curve for milk
B) A leftward shift of the supply curve for milk
C) An increase in the price of milk
D) An increase in the demand for milk
E) A decrease in the quantity demanded of milk
Cattle Feed
A type of food specifically formulated and provided for the dietary needs of cattle, including grains, hay, and other nutrients.
Supply Curve for Milk
A graphical representation showing the relationship between the quantity of milk that producers are willing to sell and the price of milk.
Price of Milk
The amount of money required to purchase a specific quantity of milk, which can vary due to factors like supply and demand, production costs, and market conditions.
- Fathom the concept of equilibrium within the market and the effect of supply and demand changes on the price and quantity at equilibrium.
- Understand the impact of production expenses and input factors on the market's supply aspect.
- Investigate market scenarios to discern the effect of supply and demand modifications on the directional variation of equilibrium price and quantity.
Verified Answer
OH
Olivia HowingtonJul 24, 2024
Final Answer :
A
Explanation :
The use of a cattle feed that increases milk production will lead to an increase in the supply of milk. This means that dairy producers will be able to offer more milk at each price level, causing a rightward shift of the supply curve for milk. As a result, there is likely to be a decrease in the price of milk, making it more affordable and potentially increasing the quantity demanded of milk.
Learning Objectives
- Fathom the concept of equilibrium within the market and the effect of supply and demand changes on the price and quantity at equilibrium.
- Understand the impact of production expenses and input factors on the market's supply aspect.
- Investigate market scenarios to discern the effect of supply and demand modifications on the directional variation of equilibrium price and quantity.