If the Price of Milk Increased by 5 Percent Because

question 3

Multiple Choice

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

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