In a perfectly competitive dairy market, how do consumers determine their demand for milk?

In a perfectly competitive dairy market, consumers determine their demand for milk based on the price of milk and their personal preferences. When the price of milk is low, consumers are generally more willing to buy larger quantities because they see it as a good deal. Conversely, if the price rises, they might buy less or look for alternatives, like plant-based milk. For example, if a gallon of milk costs $3, a family may decide to buy two gallons, but if the price jumps to $5, they might only purchase one gallon. This relationship between price and quantity demanded helps shape the overall demand in the market.