If consumer income decreases, leading to a leftward shift in the market demand curve for dairy products, what is the most likely immediate effect on the equilibrium price in a perfectly competitive dairy market?

When consumer income decreases, people have less money to spend, which means they will buy less of certain products, including dairy. This drop in demand causes the demand curve for dairy products to shift to the left, indicating that at every price level, consumers want to buy less. In a perfectly competitive market, this reduced demand leads to a surplus of dairy products, as suppliers are still producing the same amount. To sell the excess products, dairy producers will lower their prices, which results in a decrease in the equilibrium price. For example, if a gallon of milk was selling for $3 before the income drop, it might decrease to $2.