In a perfectly competitive dairy market, how does the equilibrium price affect consumer welfare when there is an increase in the supply of milk due to better farming technology?

In a perfectly competitive dairy market, when there is an increase in the supply of milk because of better farming technology, the equilibrium price of milk tends to decrease. This happens because more milk is available, and with many farmers competing, they lower prices to attract buyers. As the price drops, consumers benefit because they can buy milk for less money, which increases their overall satisfaction and welfare. For example, if milk prices fall from $3 to $2 per gallon, families can save money on groceries, allowing them to spend that extra cash on other important needs. Overall, the increase in supply not only makes milk more affordable but also enhances the quality of life for consumers in the market.