Vanilla is a key input in ice cream production. From 2011 to 2018, the price of vanilla rose from about US$100 per kg to almost US$600 per kg. The diagram displays market demand for, and supply of, ice cream. The initial equilibrium is X. Which point shows the impact of this price increase on the ice cream market?
- Apoint A
- Bpoint B
- Cpoint C
- Dpoint D