When the Price of Milk Goes Up as a Result

question 67

Multiple Choice

When the price of milk goes up as a result of a rightward shift of the demand curve for milk, the total revenue collected by milk producers will

• A) increase only if milk is inelastic in supply.
• B) decrease only if milk is elastic in supply.
• C) remain constant only if milk has a unitary price elasticity of supply.
• D) none of the above

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Definitions:

Quintile Distribution

A statistical measure dividing a population into five equal groups according to a particular variable, such as income or wealth.

SNAP Program

The Supplemental Nutrition Assistance Program, a federal aid program in the United States that provides food-purchasing assistance for low- and no-income people.

Temporary Assistance

Short-term aid or support provided by government or private entities to individuals or families in need, usually in the form of financial help, food, or housing.