Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
By the price of milk and their personal preferences
B
By government regulations on milk prices
C
By the quantity of milk produced by dairy farmers
D
By the marketing strategies of dairy brands
Understanding the Answer
Let's break down why this is correct
Answer
In a perfectly competitive dairy market, consumers determine their demand for milk based on factors like price, personal preferences, and available substitutes. When the price of milk is low, consumers are likely to buy more because they feel they are getting a good deal. If the price rises, some may buy less or switch to alternatives like almond milk or soy milk. For example, if a gallon of milk costs $3, many families might buy it regularly, but if the price jumps to $5, they might start buying less or choose a different drink. Overall, consumer demand is shaped by how much they are willing to pay and what other options they have.
Detailed Explanation
Consumers decide how much milk they want based on its price and what they like. Other options are incorrect because Some might think that government rules set the price of milk; It's easy to think that the amount of milk made by farmers controls demand.
Key Concepts
consumer behavior in dairy markets
Topic
Perfect Competition in Dairy Markets
Difficulty
easy level question
Cognitive Level
understand
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