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Glossary
Knowledge Check - Scenario 4

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 4: Farmers and ranchers switch from milk production (dairy cows) to beef production (beef cattle).

1. Based on Scenario 4, the supply curve for milk

shifts to the right.

shifts to the left.

does not shift.

Scenario 4: Farmers and ranchers switch from milk production (dairy cows) to beef production (beef cattle).
 
2. Based on Scenario 4, which factor caused the change in supply?

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