Answer to Question #237481 in Microeconomics for OK MOLEFE

Question #237481

Explain the effect on the production of ice cream, if the price of raw milk decreases.

Also illustrate in the graph.


1
Expert's answer
2021-09-15T17:11:00-0400

If the price of an input which is raw milk decreases, the supply of ice cream is likely to increase.


the supply curve shift from SS to SS1 because of increase in supply


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