In a perfectly competitive dairy market, what happens to the market price of milk when the supply of milk increases while demand remains constant?

In a perfectly competitive dairy market, if the supply of milk increases while the demand stays the same, the market price of milk will decrease. This happens because more milk is available for sale, which means sellers may need to lower their prices to attract buyers. When the price goes down, consumers are more likely to buy more milk, but since demand is constant in this scenario, the extra supply leads to a surplus of milk. For example, if farmers suddenly produce more milk due to better farming techniques, but people are still buying the same amount, the extra milk will push prices lower. Overall, the increase in supply causes the price to fall until it reaches a new balance where the quantity supplied matches the quantity demanded.