Which of the Following Would Cause a Decrease in the Supply

question 151

Multiple Choice

Which of the following would cause a decrease in the supply of milk?

• A)an increase in the price of cookies (assuming that milk and cookies are complements)
• B)a decrease in the price of milk
• C)an increase the price of a product that producers sell instead of milk
• D)an increase in the number of firms that produce milk

---

Definitions:

Bicycle Company

A business entity that specializes in the manufacturing, distribution, and sale of bicycles and related equipment and accessories.

National Income

The total income earned by a nation's people and businesses, including salaries, profits, and investment income, within a specific period.

Net National Product

The total value of all goods and services produced by a country's residents in a year, minus depreciation.

Depreciation

A decrease in the value of a currency as measured by the amount of foreign currency it can buy.