In Figure 3-6, suppose D1 and S1 indicate initial conditions in the market for ice cream. Which of the following changes would tend to cause a shift from S1 to S2 in the market for ice cream?

a. an increase in the price of sugar, an ingredient used to produce ice cream
b. a decrease in the price of frozen yogurt, a substitute for ice cream
c. abnormally hot weather that temporarily increases consumer desire for ice cream
d. a decrease in the price of milk, an ingredient used to produce ice cream


a. an increase in the price of sugar, an ingredient used to produce ice cream

Economics

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