Question

In 2007, dairy farmers faced an (equilibrium) wholesale price for their milk of about 1
cent per ounce. Because of changes in consumer preferences, the demand for milk has
been declining steadily since then.

In the short run, what effect would this have on the price of milk? On the mumber of dairy
farmers (and the size of dairy herds)? Explain​

Answer 1

Answer:

dairy farmers faced an (equilibrium) wholesale price for their milk of about 1

cent per ounce. Because of changes in consumer preferences, the demand for milk has

been declining steadily since then.

In the short run, what effect would this have on the price of milk? On the mumber of dairy

farmers (and the size of dairy herds)? Explain