If the Price of Milk Increased by 5 Per Cent

question 80

Multiple Choice

If the price of milk increased by 5 per cent because of an increase in the demand for milk, and the quantity of milk supplied increased by 7 per cent,

• A) milk is more of a luxury than a necessity.
• B) milk is more of a necessity than a luxury.
• C) the supply curve of milk has shifted rightward.
• D) the price elasticity of supply of milk is greater than one.

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Definitions:

Medium-Range

Pertaining to the intermediate term, often in the context of planning, forecasting, or operations.

Long-Range

Pertaining to strategic decisions or actions that consider and impact a significant period into the future, often beyond the immediate or short term.

Point-Of-Sale Computers

Computerized systems used in retail environments to conduct sales transactions, manage inventory, and record customer purchases.

Short-Term Forecasts

Predictions about future events or trends that are expected to occur within a relatively brief time period.