The Invention of a Machine That Increases Milk Production Is

question 16

Multiple Choice

The invention of a machine that increases milk production is discovered. If farmers were to decry the effect of this new technology on the price of milk and lobby government to set the price of milk at the price before the invention, what would be the result?

• A) Excess demand for milk
• B) Excess supply of milk
• C) Neither a shortage nor a surplus of milk
• D) A decline in the price of milk

---

Definitions:

Profit Motive

The intent to achieve financial gain, which drives individuals and companies to engage in business activities.

Government Subsidies

Financial support provided by the government to firms, individuals, or other governmental bodies, often aimed at promoting economic and social policies.

Production Process

The sequence of operations or activities involved in converting inputs into finished goods or services.