If a decrease in consumer income leads to a leftward shift in the demand curve for milk in a perfectly competitive market, which of the following outcomes is most likely to occur in the short run for individual firms like Best Milk?

When consumer income decreases, people generally buy less milk because they have less money to spend. This causes the demand curve for milk to shift to the left, meaning that at every price level, the quantity of milk demanded is lower. In a perfectly competitive market, this drop in demand leads to a surplus of milk, as firms like Best Milk continue to supply the same amount. As a result, the price of milk will likely fall because there are more products available than consumers want to buy. In the short run, Best Milk may experience lower sales and reduced profits due to this decrease in demand and price.