Question

hoo! revealed that chocolate is flavor of ice cream in America. For e, indicate the possible effects on ly, or both as well as equilibrium price PROBLEMS 1. A study conducted by Yahoo! reves the most popular flavor of ice C each of the following, indicate the po demand, supply, or both as we and quantity of chocolate ice cream. a. A severe drought in the Midwest causes dairy farm- ers to reduce the number of milk-producing cattle in their herds by a third. These dairy farmers sup- ply cream that is used to manufacture chocolate ice cream. b. A new report by the American Medical Association reveals that chocolate does, in fact, have significant health benefits. c. The discovery of cheaper synthetic vanilla flavoring lowers the price of vanilla ice cream. d. New technology for mixing and freezing ice cream lowers manufacturers' costs of producing chocolate ice cream.

Answer 1

(as The lower production of mille due to severe draught will make less anailability of milk and it will leade to increase of price of available milk. Since the chocolak peecream is mach up of mille , the price of icecream also world be increased unless dame quality mille is available at lower rate this increase in proce of ice cream may lower the demand of chocolate ice-cream (b) A chocolate icecream is a food product which people most prefered to use in occations like, bo Picnic holidays, Ceremony or the watching Cenema, and most of the people who prefer ice-creams are of age below 18. There for during this occations and below 18 q age people are less bother about health benefits, so don't i dont think that there will be any effect in demand or price is schoudate feccream, due to this medical findings Io cheaper Vanila ree-creams on market will increase to wann demand of vanila ice creams on market and CamScanner

If there is a huge difference behnam price of Nanila ice cream and price of chocolate ice cream there will be a decrease in damped clemend af chocolate ice-cream, day loing new Sechology is able to reduce production lost and able to maintain same quality then this will Greate and increased demand is morket. This will allow chocolate ice cream to compete with other alternati cheaper alternatines. Srice hange lemad hinge Supply is needed if lompany is able to make Supply needed or equal to em quantity demended, then we can say that that it is in equilibrium. we can say cs Scanned with CamScanner