Asked by
Kendall Schmidt
on Dec 11, 2024
Verified
In Figure 3-6, suppose D1 and S1 indicate initial conditions in the market for ice cream. Which of the following changes would tend to cause a shift from S1 to S2 in the market for ice cream?
A) an increase in the price of sugar, an ingredient used to produce ice cream
B) a decrease in the price of frozen yogurt, a substitute for ice cream
C) abnormally hot weather that temporarily increases consumer desire for ice cream
D) a decrease in the price of milk, an ingredient used to produce ice cream
Frozen Yogurt
A frozen dessert made with yogurt and sometimes other dairy products, often viewed as a healthier alternative to traditional ice cream.
Sugar
A sweet-tasting, soluble carbohydrate that is used to sweeten food and beverages, derived from sources like sugarcane and sugar beets.
Market Shift
A significant change in the supply, demand or overall conditions of a market, which can result from various factors like technological advances or shifts in consumer preferences.
- Comprehend the influence of alterations in input costs on the supply curve and market prices.
- Evaluate the influence of production cost alterations on the supply in the market.
Verified Answer
BC
Learning Objectives
- Comprehend the influence of alterations in input costs on the supply curve and market prices.
- Evaluate the influence of production cost alterations on the supply in the market.