Question

A dairy decides to cut back on the production of chocolate-flavored milk and to increase its production of strawberry-flavored milk. How does this decision affect the supply curve for strawberry-flavored milk?

Answer 1

Answer:

The supply curve for strawberry-flavored milk will go up.

Explanation:

Answer 2

Answer:

The supply curve for strawberry-flavored milk will go up.

Explanation:

When the company has decided to cut down on the production of chocolate-flavored milk and increase the production of strawberry-flavored milk it certainly had its own reasons. The primary reason for such a move was most probably changes in demand, with the demand for chocolate-flavored milk going down, while the demand for strawberry-flavored milk going up.

With the increased production of strawberry-flavored milk, the supply curve for it will experience changes, manifested through rising, or rather the curve will move up. There can be several reasons as to why the demand for this type of milk has increased, but the two most probable ones are different preferences in taste among newer and emerging clientele, and maybe an emerging trend in the society.