Imagine that the amount of milk being purchased in the United States suddenly decreased.
Question
Which of the following is the most likely cause?
(1 point)
Responses
increased price of milk
increased price of milk
increased supply of milk
increased supply of milk
decreased demand for milk
decreased demand for milk
decreased competition for milk
The most likely cause for a sudden decrease in the amount of milk being purchased in the United States is decreased demand for milk. Decreased demand can be driven by various factors, such as a shift in consumer preferences, increased popularity of milk substitutes (like almond or soy milk), health concerns about dairy consumption, or economic factors that lead consumers to cut back on spending.
Increased price of milk could also lead to a decrease in the amount of milk being purchased, as consumers might look for cheaper alternatives or buy less milk, but a sudden decrease suggests a change in purchasing behavior rather than a gradual reaction to price changes. Increased supply of milk without an increase in demand might lead to a surplus and potentially lower prices, which could actually increase the amount purchased if the product remains desirable to consumers. Decreased competition for milk would typically suggest less supply diversity, potentially leading to higher prices or less choice, which might impact demand, but it is not the most direct cause for a decrease in purchases compared to decreased demand itself.