Factors Affecting Quantity Supplied of Ice Cream
What will cause an increase in the quantity supplied of ice cream at local grocery stores?
Which of the following factors will lead to an increase in the quantity supplied of ice cream at local grocery stores?
There are several factors that can cause an increase in the quantity supplied of ice cream at local grocery stores. Out of the options provided, the correct answer would be Prairie Farms, a major producer of ice cream, invents a new cost-saving process for freezing ice cream so the correct answer is option (b).
When Prairie Farms invents a new cost-saving process for freezing ice cream, this means that they can now produce more ice cream at a lower cost. As a result, they can offer more supply of ice cream to the grocery stores. This increase in supply could lead to a decrease in the price of ice cream, which would further encourage consumers to purchase more ice cream.
On the other hand, options a, c, d, and e would not necessarily lead to an increase in the quantity supplied of ice cream. Option a would lead to an increase in the cost of producing ice cream, which could lead to a decrease in the quantity supplied. Option c would lead to a decrease in the price of ice cream, which could lead to a decrease in the quantity supplied. Option d would lead to an increase in demand for frozen custard, but this would not necessarily lead to an increase in the quantity supplied of ice cream.
Finally, option e would lead to an increase in the price of ice cream, which could lead to an increase in the quantity supplied, but this would depend on whether the higher price would cover the cost of producing more ice cream.