Honeybees and Ice Cream.

Honeybees and Ice Cream. Suppose the decline of bee colonies increases the prices of some ingredients used to produce ice cream. Consider two flavors of ice cream, strawberry and vanilla. The cost of producing strawberry ice cream increases by 20 percent, while the cost of producing vanilla ice cream increases by only 5 percent. Use a supply–demand graph to show the implications for the equilibrium prices and quantities of the two flavors of ice cream.

 

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