The diagram represents the market for milk. Two changes occur. First, the price of cattle feed increases sharply, then the government increases the tax on cheese, which uses milk in its production. Which movements of the demand curves for milk on the diagram are consistent with these events?
- Afrom W to X, followed by X to Z
- Bfrom W to Z, followed by Z to X
- Cfrom X to Z, followed by Z to Y
- Dfrom Z to X, followed by X to Y