Answered

Milk is now selling for much higher prices than in the past.



Which two things could be expected to happen next?

Select two correct answers.


Ademand will go down
Bdemand will go up
Csupply will go down
Dsupply will go up

Verified Answer :

Final answer:

As milk prices rise, demand is likely to decrease since consumers will buy less, while supply is likely to increase as producers aim for higher profits. This reflects common market responses to price changes. Therefore, the correct expectations are that demand will go down and supply will go up.


Explanation:

Understanding Milk Pricing and Market Reactions

When the price of milk rises significantly, two primary responses can be expected in the market based on the principles of supply and demand.

  1. Demand will go down: When prices increase, consumers typically purchase less of that product. For example, if milk prices go up, consumers might choose to buy less milk or switch to alternatives like almond milk or soy milk.
  2. Supply will go up: Higher prices can incentivize producers to supply more milk to the market. This is because increased prices can lead to greater profits, encouraging farmers to produce more.

In summary, as milk prices increase, we anticipate that demand decreases while supply increases in response to the potential for higher profits.


Learn more about Milk Pricing here:

https://brainly.com/question/14819894


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