Figure 3-12 -In Figure 3-12, Suppose D₁ and S₁ Indicate Initial Conditions

question 236

Multiple Choice

Figure 3-12
-In Figure 3-12, suppose D₁ and S₁ indicate initial conditions in the market for ice cream. Which of the following changes would tend to shift this market from D₁ to D₂?

• A) an increase in the price of milk, an ingredient used to produce ice cream
• B) an increase in the price of frozen yogurt, a substitute for ice cream
• C) a decrease in the price of sugar, an ingredient used to produce ice cream
• D) a decrease in consumer income

---

Definitions:

Business Owners

Individuals or entities that possess and operate a commercial enterprise, assuming the risks and rewards associated with the business.

Altering

The process of making changes or modifications, often referred to in the context of adjusting or tailoring clothes, but can also apply broadly to adjustments in plans or designs.

Building

The act or process of constructing structures such as houses, offices, and factories.

Service Businesses

Service businesses are companies that primarily earn revenue through providing intangible products and services rather than selling physical goods. Examples include consulting firms, restaurants, and cleaning services.