Question

26. Given a normal market supply curve for ice cream, if the surgeon general states that ice cream causes cancer, then:________

a. there is an increase in supply of ice cream.
b. there is an increase in the quantity supplied of ice cream.
c. there is an decrease in supply of ice cream.
d. there is a decrease in the quantity supplied of ice cream.
e. cannot be determined from information given.

Answer 1

B) there is a decrease in the quantity supplied of ice cream

Step-by-step explanation:

normal market supply curve provide the relationship between quantity supply and the price of the community.

In this question the ice cream is the quantity supply,Given a normal market supply curve for ice cream,

In case, surgeon general states that ice cream causes cancer, then there will be decrease in the quantity supplied of ice cream because the value(price) has decreased then the quantity supplied of ice cream decreases.