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Glossary
Knowledge Check - Scenario 5

For the following scenario in the milk market, identify the type and cause of change. Note that these scenarios are asking about producer behavior—supply and quantity supplied.


Scenario 5: The price of cheese, which several milk-producing firms also produce, increases.

1. Based on Scenario 5, the supply curve

shifts to the right.

shifts to the left.

does not shift.

 
Scenario 5: The price of cheese, which several milk-producing firms also produce, increases.
 
2. Based on Scenario 5, which factor caused the change in supply of milk?

A change in the costs of inputs to the production process

A change in technology

A change in the number of producers in the market

Government policies

Expectations of future prices

A change in the price of other goods produced by a firm

A change in the price of milk.